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THE  ESSENTIALS   OF  SOCIALISM 


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THE  MACMILLAN  CO.  OF  CANADA,  Ltd. 

TOXONTO 


THE 
ESSENTIALS  OF  SOCIALISM 


IRA  B^  CROSS,   Ph.D. 


"  Some  people  study  all  their  lives,  and  at  their 
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THE  MACMILLAN  COMPANY 

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PREFACE 

The  ordinary  volume  on  socialism  is  either 
biased  in  its  presentation  of  the  subject  or  it 
covers  too  small  a  portion  of  the  field  by  being 
an  historical  sketch,  a  bit  of  propaganda  literature, 
or  merely  a  discussion  of  its  theoretical  founda- 
tion. In  the  following  pages  I  have  endeavored 
to  avoid  these  objectionable  features,  in  the  hope 
that  the  volume  may  serve  as  a  handbook  to  the 
busy  reader  or  as  a  textbook  for  the  classroom. 
My  object  has  been  to  cover  the  field  usually  dis- 
cussed and  to  present  the  subject  in  such  a  manner 
that  the  reader  or  instructor  may  be  free  to  form 
and  express  his  own  opinions  and  to  elaborate 
or  to  curtail  any  part  of  the  discussion  that  he 
may  desire. 

An  effort  has  been  made  to  state  fairly  and 
accurately  both  sides  of  the  issues  involved,  and 
although  I  realize  the  practical  impossibility  of 
attaining  this  ideal,  I  cherish  the  hope  that  the 
following  statement  may  prove  satisfactory  to 
the  advocates  as  well  as  to  the  opponents  of  this 
widely  discussed  and  much  misunderstood  subject. 


Viii  PREFACE 

In  the  text  only  American  and  English  publi- 
cations have  been  cited.  This  has  been  deemed 
advisable  because  the  ordinary  reader  does  not 
possess  a  reading  knowledge  of  Italian,  French, 
or  German.  With  but  a  few  exceptions,  maga- 
zine articles  and  pamphlets  have  also  been  omitted 
from  the  list  of  references,  because  the  former  are 
without  number  and  the  latter  are  very  difficult 
to  obtain.  Asterisks  (*)  have  been  used  to  point 
out  the  references  especially  recommended. 

It  is  a  pleasure  to  acknowledge  my  indebted- 
ness to  my  colleagues.  Professors  Alvin  S.  John- 
son, Harry  A.  Millis,  and  Burt  Estes  Howard,  all 
of  whom  have  given  much  kindly  criticism  and 
many  helpful  suggestions  in  the  preparation  of 

this  small  volume. 

IRA  B.  CROSS. 

Stanford  Uiovkesitt, 

November,  1911. 


CONTENTS 

OHAFTKB  PASB 

I.    Intkoduction 1 

IL    The  Socialist  Indictment  of  Capitalism  11 
in.    Socialism,  its   Definition   and  Differen- 
tiation    FROM     Other     Schemes     for 

Social  Betterment 14 

IV.    Classification   of  the  Different  Kinds 

OF  Socialists 35 

V.    The  Inevitability  of  Socialism          .        .  90 
VL    Methods   of  Obtaining   Collective  Own- 
ership    101 

VII.    Outlines  of  a  Possible  Socialist  State  .  106 
VIII.    Supplementary  Chapter.     Socialism  and 

Trade-Unionism 121 

IX.    Conclusion 126 

BiBLIOORAPHT 129 

Index 151 


ESSENTIALS   OF   SOCIALISM 

CHAPTER  I 

INTRODUCTION 

Few  movements  in  the  world's  history  have 
attracted  the  attention  or  have  aroused  such  bit- 
ter opposition  as  has  Marxian  or  scientific  social- 
ism. Various  reform  measures,  popularly  called 
"socialistic,"  and  numerous  Utopian  schemes  for 
social  betterment  have  always  been  mildly  op- 
posed, but  it  has  been  against  Marxian  socialism 
that  the  most  strenuous  and  unending  battle  has 
been  waged.  And  like  most  movements  whose 
followers  have  been  grievously  persecuted,  it  has 
grown  marvellously  strong  and  active,  until  at 
the  present  time  it  is  undoubtedly  one  of  the 
most  widely  discussed  subjects  before  the  public. 

Marxian  or  scientific  socialism  is,  as  Professor 
Veblen  says,  "the  socialism  that   inspires   hopes 


2  ESSENTIALS  OF  SOCIALISM 

and  fears  to-day.  .  .  .  No  one  is  seriously  appre- 
hensive of  any  other  so-cailed  socialistic  move- 
ment.*'^ Its  position  of  prominence  has  been 
attained  within  a  comparatively  short  time.  The 
roots  of  its  teachings  are  found  in  earlier  writings, 
but  as  a  fairly  well  defined  movement  it  may  be 
said  to  date  from  the  publication  of  the  "  Com- 
munist Manifesto  "  in  1848.  This  small  pamphlet, 
a  manifesto  of  a  revolutionary  organization,  "  The 
Communist  League,"  was  jointly  written  by  Karl 
Marx  and  Friedrich  Engels.  It  contains  in  brief 
and  concise  form  much  that  was  later  developed 
through  the  writings  and  speeches  of  these  two 
German  radicals  into  those  principles  which  to-day 
form  the  foundation  of  the  socialist  movement 
throughout  the  world.  The  words  "  socialism  " 
and  "socialist"  are  also  of  comparatively  late 
origin,  no  trace  of  their  use  having  been  found 
prior  to  1833. ^  At  first  the  term  "  socialist "  was 
applied  on  the  one  hand  to  "  the  adherents  of 
various  Utopian  systems  —  Owenites  in  England, 
and  Fourierists  in  France ;  and  on  the  other  hand, 
[to]  the  most  multifarious  social  quacks,  who,  by 
all  manners  of  tinkering,  professed  to  redress, 
without  any  danger  to  capital  and  profit,  all  sorts 

*  QvMHerly  Journal  of  Economics,  vol.  xxi.,  p.  229. 
2  International  Socialist  Beisievo,  vol.  vi.,  p.  46. 


INTRODUCTION  3 

of  social  grievances,  —  in  both  cases  men  outside 
the  working  class  movement,  and  looking  rather 
to  the  'educated'  classes  for  support."^  That 
portion  of  the  working  class  which  had  become 
convinced  of  the  insufficiency  of  such  Utopian  and 
variegated  reform  measures,  and  which  had  "  pro- 
claimed the  necessity  of  a  total  social  change,  that 
portion  then  called  itself  'Communist.'"  Thus 
socialism  was  a  middle-class  movement;  com- 
munism was  a  working-class  movement.  Social- 
ism was  "  respectable  " ;  communism  was  not.*  A 
reversal  in  the  meaning  and  application  of  these 
terms  has  taken  place  in  later  years,  so  that  to-day 
the  advocates  of  Utopian  colony  or  communistic 
experiments  are  called  "communists,"  while  the 
followers  of  Marx  and  Engels,  the  former  com- 
munists, are  now  called  "socialists."  Failure  to 
recognize  this  change  accounts  for  certain  errors 
on  the  part  of  some  of  the  critics  of  modern 
socialism. 

The  socialist  movement,  young  though  it  is, 
has  spread  very  rapidly,  until  at  the  present  time 
there  is  scarcely  any  part  of  the  globe  free  from 
its  enthusiastic,  self-sacrificing,  and  proselyting 
members.     It  recognizes  no  lines  of  nationality, 

*  Engels,  Preface  to  the  Communist  Manifesto^  p.  7. 
«/M«J. 


4  ESSENTIALS  OF  SOCIALISM 

color,  race,  or  creed.  The  latest  available  statis- 
tics show  that  the  voting  strength  of  the  social- 
ists throughout  the  world  is  about  as  follows :  ^  — 


CoTJNTBT  ■  Votes 


Pabliauentabt 

RSFBEaKNTitTITXS 


Germany 3,250,000 52 

France 1,300,000 77 

Austria 1,000,000 87 

United  States 600,000 9« 

Russia 600,000 60» 

England 500,000 40 

Belgium 500,000 42 

Italy 339,000 44 

Finland 337,000 86 

Greece —        20 

Switzerland 100,000 7 

Denmark 99,000 28 

Norway 90,000 11 

Holland 82,000 7 

Sweden 75,000 36 

Spain 40,000 1 

Servia 30,000 1 

Argentina 5,000 1 

Bulgaria 3,000 — 

Australian  Commonwealth  .     —        62 

South  Africa  Union     ...     —        4 

6  HazelVs  Annual,  1911.    Pp.  399-400. 

'  HazelVs  Annual  places  the  number  of  socialist  parliamen- 
tary representatives  in  the  United  States  at  nine.  This  is  in- 
correct. At  the  close  of  1910  there  were  seventeen  socialists  in 
state  legislatures  and  one  socialist  congressman. 

7  1906  returns. 


INTRODUCTION  5 

In  the  United  States  it  is  only  within  the  last 
decade  that  the  socialist  movement  has  attained  a 
position  of  prominence.  During  the  first  half  of 
the  nineteenth  century  the  existence  of  cheap 
land,  political  liberty,  and  freedom  of  conscience 
caused  this  country  to  be  used  as  an  experimental 
ground  by  the  followers  of  Owen,  Cabet,  Fourier, 
and  other  Utopians.  Numerous  colonies  were 
established  and  many  members  were  enlisted,  but 
almost  without  exception  the  outcome  proved  to 
be  failure  of  the  most  dismal  and  discouraging 
sort. 

It  was  not  until  1876  that  any  serious  attempt 
was  made  in  the  United  States  to  form  a  political 
party  for  the  purpose  of  propagating  the  princi- 
ples of  socialism.  During  the  next  twenty-five 
years  this  organization,  which  later  became  the 
Socialist  Labor  Party,  received  slight  support  at 
the  hands  of  the  voters.  The  causes  which  con- 
tributed to  its  failure  may  be  summarized  as  hav- 
ing been  the  dominance  of  a  strongly  individual- 
istic point  of  view  among  the  American  people ; 
the  existence  of  the  freedom  of  the  press,  of 
assembly  and  of  speech,  the  right  of  trial  by  jury 
and  of  equal  manhood  suffrage,  —  all  of  which 
removed  many  of  those  sources  of  oppression 
which  abroad   had  served  to  unite  the  working- 


6  ESSENTIALS  OF  SOCIALISM 

class  under  the  banner  of  socialism  ;  the  presence 
of  large  areas  of  cheap  and  free  land  ;  the  exist- 
ence of  a  large  land-owning  farming  class  essen- 
tially conservative  in  its  point  of  view ;  the  absence 
of  fixed  class  lines  ;  a  uniformly  high  rate  of 
wages,  and  a  high  standard  of  living;  the  an- 
tagonistic attitude  of  the  Socialist  Labor  Party 
towards  "  pure  and  simple  "  trade-unionism  ;  and 
the  "  foreign  "  character  of  the  movement,  led  as 
it  was  almost  entirely  by  German  immigrants. 

With  the  progress  of  industry  and  the  growth 
of  population  have  come  changed  conditions  which 
have  made  for  an  increase  in  the  socialist  follow- 
ing. Free  and  cheap  lands  of  satisfactory  quality, 
which  previously  served  as  a  sort  of  safety  valve 
for  the  discontent  of  the  masses,  no  longer  exist. 
Coupled  with  this  is  a  very  noticeable  increase  of 
tenancy  in  both  city  and  country.  Strikes,  lock- 
outs, boycotts,  the  "union  busting"  activities  of 
the  capitalists,  the  seeming  partiality  shown  the 
latter  class  by  every  branch  of  the  government, 
the  difficulty  which  the  unions  have  had  in  obtain- 
ing labor  laws  and  factory  legislation  and  in  hav- 
ing them  upheld  by  state  and  federal  courts,  all  of 
these  things,  and  more,  have  added  to  the  unrest 
of  the  working-class  and  have  made  its  members 
more   willing  than  ever  before  to  listen  to  the 


INTRODUCTION  / 

arguments  of  the  socialists,  who  have  never  neg- 
lected an  opportunity  of  driving  home  the  appli- 
cation of  their  teachings  to  current  problems. 
Another  matter  which  must  not  be  overlooked  is 
the  changed  attitude  of  the  socialists  towards 
trade-unionism.  Previously  it  was  one  of  oppo- 
sition; to-day  it  is,  for  the  most  part,  one  of  ap- 
proval. Many  of  the  most  prominent  socialists 
are  also  the  leaders  of  the  trade-unionists.  The 
dissatisfaction  of  the  voters  with  the  Republican 
and  Democratic  parties  has  caused  many  to  sever 
their  connections  with  those  political  organiza- 
tions and  to  ally  themselves  with  the  socialists  as 
a  method  of  protest.  The  publication  by  the 
popular  magazines  of  articles  dealing  with  the 
subject  of  socialism  has  not  only  attracted  the  at- 
tention of  the  public  to  the  growing  importance 
of  the  issue,  but  it  has  also  led  many  to  accept  its 
principles  and  engage  in  their  propagation. 

In  1908  the  Socialist  Party  of  the  United  States 
polled  about  500,000  votes.  Since  that  time  its 
following  has  increased,  so  that  in  1911  there 
were  no  less  than  435  socialist  office-holders  in 
the  United  States,  coming  from  33  states  and 
representing  about  160  municipalities  and  elec- 
tion districts.  Professor  R.  F.  Hoxie  of  the  Uni- 
versity of  Chicago,  writing   under   the   title   of 


8  ESSENTIALS  OF  SOCIALISM 

"The  Rising  Tide  of  Socialism,"  states  that  in 
point  of  function  these  oflQce-holders  include  "  1 
congressman,  1  state  senator,  16  state  representa- 
tives, 28  mayors,  village  presidents  and  township 
chairmen,  3  city  commissioners,  and  167  aldermen, 
councillors,  and  village  and  township  trustees. 
Sixty-one  others  occupy  important  executive,  leg- 
islative, and  departmental  positions,  so  that  con- 
siderably more  than  one-half  may  be  said  to  hold 
major  legislative  or  municipal  positions.  Of  those 
remaining,  it  is  noteworthy  that  15  are  assessors, 
62  are  school  officials,  and  65  are  connected  with 
the  work  of  justice  and  police."  ^ 

REFERENCES 

I.  General  References  to  the  History  of  Socialism. 

*  Ely.     French  and  German  Socialism. 

*  Guthrie.     Socialism  before  the  French  Revolution. 

*  Hunter.     Socialists  at  Work. 

*  KiRKUP.    History  of  Socialism. 

Macdonald.     The  Socialist  Movement.     Chs.  10-11., 

*  Skelton.     Socialism.     Ch.  9. 

SoMBART.     Socialism  and  the  Social  Movement.    Pp. 

224-272. 
WooLSEY.     Communism  and  Socialism. 

3.  Australia. 

Clark.     The  Labor  Movement  in  Australasia. 
HiRSCH.     Democracy  versus  Socialism. 

*  Hunter.    Socialists  at  Work.     Pp.  354r-356. 

'  Journal  of  Political  Economy,  vol.  xix.,  pp.  610-611. 


INTRODUCTION  9 

Lb  Rossionol  and  Stewart.     State  Socialism  in  New 

Zealand. 
Reeves.     State   Experiments  in  Australia  and  New 

Zealand. 
St.  Ledger.    Australian  Socialism. 
Some  ART.     Socialism  and  the  Social  Movement.    Pp. 

253-256. 

*  Stodd  ART.    The  New  Socialism.    Supplementary  chap- 

ter on  i'  Notes  on  Australian  Socialism.'' 

England. 

*  Anonymous.     The  Case  Against  Socialism.     Ch.  2. 
Barker.     British  Socialism.     Chs.  33-34. 
FoRSTER.     English  Socialism  of  To-day. 

*  Hunter.     Socialists  at  Work.     Ch.  4. 

Laveleye.  Socialism  of  To-day.  Appendix  on  \\  So- 
cialism in  England,"  by  G.  H.  Orpen. 

Macdonald.     The  Socialist  Movement.     Pp.  229-234. 

SoMBART.  Socialism  and  the  Social  Movement.  Pp. 
144-155,  240-252. 

ViLLiERS.     The  Socialist  Movement  in  England. 

Webb.     Socialism  in  England. 

Woods.     English  Social  Movements.     Pp.  38-78. 

,  France. 

*  Elt.     FVench  and  German  Socialism.     Chs.  1-8. 

Socialism  and  Social  Reform.     Appendix  X. 
Ensor.     Modem  Socialism.     Chs.  7,  25,  28. 

*  Hunter.     Socialists  at  Work.     Ch.  3. 
Macdonald.     The  Socialist  Movement.    Pp.  217-220. 

*  Peixotto.   The  French  Revolution  and  Modem  French 

Socialism. 
Sombart.     Socialism  and  the  Social  Movement.    Pp. 
156-164,  233-239. 

,  Germany. 

Dawson.     German  Socialism  and  Ferdinand  Lassalle. 

*  Ely.    French  and  German  Socialism.     Chs.  9-15. 


lO  ESSENTIALS   OF  SOCIALISM 

Ensor.     Modem  Socialism.     Chs.  22,  28. 

*  Hunter.     Socialists  at  Work.     Ch.  1. 

*  KiRKUP.    History  of  Socialism.     Especially  ch.  9. 
Macdonald.    The  Socialist  Movement.    Pp.  213-216. 

*  RtJSSELL.     German  Social  Democracy. 

SoMBART.     Socialism  and  the  Social  Movement.     Pp. 
165-174,  224-232. 

6.  United  States. 

Debs.     The  American  Movement. 

*  Ely.  The  Labor  Movement  in  America.  Chs.  8-11. 
Engels.  The  Working-class  Movement  in  America. 
Oilman.     Socialism  and  the  American  Spirit.  Chs.  1-6. 

*  HiLQuiT.     History  of  Socialism  in  the  United  States. 

Socialism  in  Theory  and  Practice.     Appendix. 
SoMBART.     Socialism  and  the  Social  Movement.    Pp. 
272-278. 

*  Stoddart.     The  New  Socialism.  Supplementary  chap- 

ter   on    "  Recent    Developments    of    American 
Socialism." 

7.  Other  Countries. 

For  notes  on  the  socialist  movement  in  other 

countries  see:  — 
Hunter.     Socialists  at  Work.     Pp.  327-363. 
Macdonald.     The  Socialist  Movement.     Chs.  10-11. 
SoMBART.    Socialism  and  the  Social  Movement.    Pp. 

256-272. 


CHAPTER  II 

THE  SOCIALIST  INDICTMENT   OF   CAPITALISM 

The  socialists  criticise  the  present  system  of 
society  most  severely,  pointing  out  its  weaknesses 
and  vigorously  assaiUng  its  very  foundations.  In 
so  doing  they  make  use  of  the  same  destructive 
arguments  as  are  employed  by  the  single  taxers, 
anarchists,  and  reformers  of  all  sorts,  differing 
from  them  only  in  that  they  lay  more  stress  than 
do  the  others  upon  the  element  of  profits  as  the 
fundamental  cause  for  the  existence  of  those  con- 
ditions which  they  propose  to  remedy.  The  word 
"  profits,"  as  used  by  the  socialists,  includes  both 
rent  and  interest  as  well  as  that  which  is  ordinarily 
designated  as  profits. 

Some  of  the  more  important  counts  in  their 
indictment  of  capitalistic  society  may  be  briefly 
summarized  as  follows  :  — 

The  existence  of  slums  and  sweat  shops  in  our 
large  cities ;  the  prevalence  of  child  and  woman 
labor ;  the  fact  that  thousands  of  men,  willing  to 
work,  are  daily  unemployed ;  the  increasing  con- 
centration of  industry  and  the  centralization   of 


12  ESSENTIALS   OF  SOCIALISM 

wealth  ;  the  lack  of  equality  of  opportunity  ;  the 
frequent  recurrence  of  panics  and  "  hard  times  "  ; 
the  anarchy  and  wastes  of  competition  and  of  capi- 
talistic production  ;  the  universality  of  adultera- 
tion and  of  commercial  dishonesty;  the  injustice 
of  rent,  interest,  and  profits,  by  means  of  which  the 
workers  are  "  exploited " ;  the  presence  on  all 
sides  of  poverty,  misery,  insanity,  crime,  drunken- 
ness, and  degeneracy ;  the  breaking  up  of  the 
home  as  the  result  of  industrial  conditions;  the 
growing  seriousness  of  the  divorce  evil;  the  traffic 
in  "  white  slaves  " ;  the  prevalence  of  graft  and 
corruption ;  and  the  inequality  of  classes  before  the 
law. 

This  by  no  means  exhausts  the  list  of  charges 
which  the  socialists  bring  against  capitalistic  so- 
ciety ;  there  are  few  things  in  the  world  to-day 
which  do  not  suffer  criticism  at  their  hands. 

REFERENCES 

Almost  all  voliunes  dealing  with  the  subject  of 
socialism  contain  data  on  "  The  Socialist  Indict- 
ment."    See  especially  the  following:  — 

Benson.     Socialism  Made  Plain. 

BouDiN.  Theoretical  System  of  Karl  Marx.  Especially 
ch.  7. 

Brooks.    The  Social  Unrest. 

Call.    The  Concentration  of  Wealth. 


SOCIALIST  INDICTMENT  OF  CAPITALISM  1 3 

Chiozza-Money.     Riches  and  Poverty. 
Devine.     Misery  and  its  Causes. 
Engels.     The  Condition  of  the  Working-class  in  Eng- 
land in  1844. 
Ghent.     Mass  and  Class. 

Our  Benevolent  Feudalism. 

Socialism  and  Success. 

*  Hunter.    Poverty, 

Kaufpman.     What  is  Socialism  ?    Ch.  1. 
Kellt.     Twentieth  Century  Socialism.     Book  2. 
Ladopf.    American  Pauperism  and  the  Abolition  of 

Poverty. 
Macdonald.     The  Socialist  Movement.     Chs.  3-5. 

*  Richardson.     Industrial  Problems.     Part  1. 

*  Skelton.     Socialism.     Chs.  2-3. 

SoMBART.     Socialism  and  the  Social  Movement.    Pp. 
19-30. 

*  Spargo.     The  Common  Sense  of  Socialism. 

*  Capitalist  and  Laborer. 
Tugan-Baranowsky.     Modem    Socialism,  etc.    Pp. 

3&-«3. 
Veblen.    Theory  of  the  Leisure  Class. 
Theory  of  Business  Enterprise. 


CHAPTER  in 

SOCIALISM;  ITS  DEFINITION  AND  DIFFERENTIA- 
TION FROM  OTHER  SCHEMES  FOR  SOCIAL  BET- 
TERMENT 

It  is  difficult  accurately  to  define  or  to  use  the 
word  "socialism,"  because,  as  ordinarily  used,  it 
may  refer,  and  that  correctly,  to  three  distinct 
things :  (1)  to  a  certain  set  of  principles  or  theo- 
ries ;  (2)  to  a  movement,  usually  a  political  party, 
whose  members  advocate  those  theories  and  are 
eager  to  attain  the  goal  which  the  latter  represent; 
and  (3)  to  the  prophesied  stage  of  society  (social- 
ism), the  next  after  capitalism,  which  the  members 
of  the  above  movement  are  striving  to  bring  about. 
Thus  the  stage  of  socialism,  or  the  socialist  state, 
is  the  goal  of  the  socialist  movement,  a  movement 
based  upon  the  principles  or  theories  of  socialism. 

In  the  ideal  socialist  state,  all  of  those  things 
employed  in  the  production  of  wealth,  which  are 
used  in  common,  would  be  owned  collectively, 
while  all  of  those  things  which  the  individual  uses 
directly  for  the  satisfaction  of  his  personal  wants, 
or  which  he  uses  in  his  capacity  as  an  individual, 
would   remain  the   property  of    the    individual. 

14 


SOCIAL  BETTERMENT  1 5 

Thus  factories,  mines,  railroads,  telegraphs,  tele- 
phones, etc.,  those  instruments  of  production 
which  to-day  are  being  used  by  millions  of  people, 
and  upon  which  countless  millions  depend  for  a 
livelihood,  would  be  owned  and  operated  collec- 
tively under  socialism  ;  but  a  carpenter's  tools,  or 
a  man's  lawn-mower,  his  clothing,  and  many  other 
things  used  solely  by  him,  would  be  owned  by 
him.  '  The  situation  would  differ  from  the  present 
primarily  in  the  fact  that  to-day  the  greater  or 
more  important  instruments  of  production  are 
owned  by  individuals  called  capitalists,  who  hire 
thousands  of  men  to  work  for  them,  and  who  man- 
age industry  with  an  eye  only  to  their  individual 
profit,  while  under  socialism  the  industries  would 
be  owned  collectively  by  the  workers  through  the 
medium  of  the  government,  and  would  be  man- 
aged by  them  by  means  of  the  initiative,  the  ref- 
erendum, and  the  recall,^  with  the  interests  of  the 

*  At  present  the  socialists  of  the  United  States  vise  the  initia- 
tive, the  referendum,  and  the  recall  in  conducting  the  affairs  of 
their  political  party,  the  idea  being  always  to  keep  the  control 
of  the  organization  in  the  hands  of  its  dues-paying  members. 
Strange  to  say,  however,  these  stanch  advocates  of  Democracy 
are  bitterly  opposed  to  the  adoption  of  the  direct  primary,  the 
reason  being  that  they  fear  that  some  other  political  party,  by 
means  of  it,  might  succeed  in  capturing  the  socialist  organization 
as  soon  as  it  became  strong  enough  to  justify  the  attempt  being 
made. 


1 6  ESSENTIALS  OF  SOCIALISM 

public  always  in  mind.  Thus,  under  socialism, 
there  would  be  no  capitalist  class,  because  there 
would  be  no  private  ownership  of  the  greater 
means  of  production.  Socialism,  however,  would 
not  abolish  capital,  for  there  would  still  remain  as 
great  a  need  for  its  use  in  the  production  of 
wealth  as  exists  to-day  under  capitalism.  The 
only  change  that  would  occur  in  this  connection  is 
that  capital  would  be  collectively,  instead  of  pri- 
vately, owned. 
ujr^S^^-Socialism  is  not  Government  Ownership,  although 
^  by  many  people,  and  strange  to  say  even  by  some 
so-called  socialists,  they  are  considered  as  being 
identical. 

The  socialists  declare  that  government  owner- 
ship is  a  reform  which  merely  substitutes  the 
government,  controlled  by  the  capitalists,  for  the 
capitalist  as  an  employer  of  labor.  It  brings  about' 
only  a  change  of  taskmasters,  and  in  many  re- 
spects a  most  unsatisfactory  change,  for  under 
government  ownership  the  workers  have  less  con- 
trol over  wages,  hours,  and  the  conditions  of 
employment  than  under  private  ownership  and 
operation.  As  a  rule,  governmental  employees  are 
not  permitted  to  form  trade-unions,  nor  can  they 
actively  participate  in  politics.  At  times  of 
strikes,  armed  force  can  be  used  more  effectively 


SOCIAL  BETTERMENT  1 7 

to  compel  them  to  return  to  work.  The  socialists 
also  argue  that  any  great  amount  of  government 
ownership  would  seriously  hinder  the  concentra- 
tion of  industry,  and  thereby  prolong  the  life  of 
capitalistic  society,  by  doing  away  with  many 
unfair  discriminations,  thus  enabling  the  small 
corporation  to  compete  on  an  equal  footing  with 
the  large  corporation.  It  is  because  of  these 
things  that  they  ordinarily  oppose  government 
ownership,  although  by  some  it  is  advocated  as 
a  stepping-stone  to  the  establishment  of  socialism. 

The  Socialist  Movement  must  not  be  confused 
with  the  Cooperative  Movement.  They  are  not  the 
same,  although  the  principle  of  cooperation  lies  at 
the  very  root  of  the  sociaKst  teachings.  Social- 
ists have  consistently  opposed  the  policy  of  laissez- 
faire  both  in  theory  and  in  practice,  and  declare 
against  all  industrial  competition.  They  do  not, 
however,  seek  to  abolish  competition  in  any  field 
other  than  the  industrial,  because  they  feel  that 
under  proper  conditions  competition  tends  to 
develop  the  best  that  lies  within  the  individual. 

The  proposed  socialist  state  is  known  by  many 
as  the  "Cooperative  Commonwealth,"  because  in 
such  a  stage  of  society  the  principles  of  coopera- 
tion would  be  carried  out  to  the  fullest  extent. 
Nevertheless,  there  are  many  regards  in  which 


1 8  ESSENTIALS   OF  SOCIALISM 

these  two  movements  differ  from  each  other. 
Cooperation,  or  the  application  of  cooperative 
principles,  has  been  tried  many  times  in  the  past. 
Socialism  has  never  been  tried,  although  commu- 
nistic or  cooperative  colonies  and  certain  social 
experiments  have  been  frequently  and  incorrectly 
referred  to  by  the  opponents  of  socialism  as 
evidences  of  its  failure  and  impracticability. 
Cooperation  does  not  represent  a  stage  in  the 
evolution  of  society ;  socialists  claim  that  social- 
ism does.  Cooperation  is  a  social  reform  measure, 
and  can  and  does  exist  side  by  side  with  capital- 
ism. Socialism  is  not  a  social  reform  measure  and 
cannot  exist  under  capitalism.  Cooperation  is  the 
voluntary  association  of  interested  individuals  for 
the  purpose  of  carrying  out  some  definite  object, 
such  as  the  establishment  and  operation  of  coop- 
erative stores,  factories,  mines,  and  similar  enter- 
prises. Socialism  is  not  a  voluntary  association 
of  a  small  number  of  individuals.  Under  it  all 
society  would  be  organized  upon  a  cooperative 
basis,  the  cooperation  being  compulsory  rather 
than  voluntary. 

Socialism  is  not  Profit-sharing.  In  a  profit-shar- 
ing establishment,  the  workers  have  no  direct  con- 
trol over  the  industry  in  which  they  are  employed. 
They  labor  for  a  capitalist  or  for  a  group  of  capi- 


SOCIAL  BETTERMENT  1 9 

talists  and  receive  at  the  end  of  the  year,  in  addi- 
tion to  wages,  a  portion  of  the  profits  of  the 
business.  Like  cooperation,  profit-sharing  is  a 
social  reform  measure  which  has  been  tried  and 
which  is  in  no  way  opposed  to  the  existence  or  the 
continuance  of  capitalism.  Under  socialism,  there 
would  be  no  capitalist  class  ;  the  workers  would 
control  the  industries  of  the  nation  and  would 
work  entirely  for  themselves,  or  for  what  would 
then  be  the  same  thing,  society. 

Socialism  is  not  Anarchism.  Although  radically 
opposed  to  each  other,  these  two  ideals  of  the 
future  state  of  society  have  been  and  still  are  con- 
stantly confounded  with  each  other.  This  is  to 
be  explained  on  the  following  grounds :  — 
(a)  Both  are  based  upon  radical  principles. 
(6)  The  destructive  arguments  of  both  follow 

the  same  lines  of  thought. 
(c)  In  the  early  days  communistic  colonies  or 
experiments  were  proposed  and  also  es- 
tablished by  both  socialists  and  anarchists. 
(cf)  It  has  not  been  more  than  two  or  three  dec- 
ades since  these  two  ideals  became  dis- 
tinct in  the  minds  of  their  followers.  As 
late  as  the  middle  '80's,  men  who  were 
anarchists  thought  and  called  themselves 
socialists. 


20  ESSENTIALS  OF  SOCIALISM 

A  belief  in  anarchism  is  based  upon  the  doc- 
trine of  Individualism  carried  to  its  logical  con- 
clusion. Anarchism  places  the  rights  and  interests 
of  the  individual  above  those  of  society  and  leads 
finally  to  the  ideal  of  no  government.  Socialism, 
on  the  other  hand,  is  collectivism.  From  its  point 
of  view  the  rights  and  interests  of  society  are 
paramount  and  must  be  conserved  under  all  cir- 
cumstances. Socialism  proposes  an  ideal  state  in 
which  the  collectivity  acting  through  the  govern- 
ment carries  on  the  production  and  exchange  of 
wealth,  as  well  as  the  greatest  possible  number  of 
other  activities  consistent  with  the  welfare  of  the 
people.  In  brief,  from  the  standpoint  of  the  social- 
ists the  government  is  to  be  all  in  all,  while  from 
that  of  the  anarchist  is  to  be  non-existent;  the 
individual  is  to  do  everything. 

The  two  ideals  also  differ  on  the  subjects  of 
religion  and  the  family  relation.  Anarchism, 
denying  all  authority,  divine  as  well  as  temporal, 
leads  logically  to  an  acceptance  of  the  idea  of 
free  love  and  to  a  denial  of  the  authority  of  the 
Church.  It  claims  that  the  individual  is  above 
the  State  and  the  Church,  and  that  consequently 
he  should  not  be  forced  to  obey  the  mandates  of 
either.  Socialism,  on  the  other  hand,  is  not  op- 
posed to  religion  although  there  are  some  social- 


SOCIAL  BETTERMENT  21 

ists,  as  there  are  some  Democrats  and  some 
Republicans,  who  are  infidels  or  even  atheists. 
Socialist  congresses  and  party  declarations  have 
steadfastly  maintained  that  religion  is  a  matter 
with  which  the  socialist  party  does  not  concern 
itself.  It ,  is  a  question  that  should  be  settled 
solely  by  the  individual.  The  prevalent  convic- 
tion that  socialism  is  atheistic  is  due,  no  doubt,  to 
the  fact  that  a  large  number  of  socialists  oppose, 
not  religion,  but  the  activity  of  the  Church  in 
behalf  of  the  interests  of  the  capitalist  class  and 
in  opposition  to  economic  and  political  reforms. 
Nor  is  socialism  opposed  to  the  home  and  the 
monogamous  family,  although  a  few  radical  and 
eccentric  socialists  have  expressed  ideas  to  the 
contrary.  The  socialists  hold  that  the  home  is 
being  broken  up  because  of  the  industrial  and 
social  conditions  which  prevail  under  capitalism. 
The  employment  of  women  and  children  in  fac- 
tories and  stores,  the  low  wages  and  long  hours, 
the  highly  unsatisfactory  housing  conditions  of 
the  working  class,  the  "  he  "  towns  of  the  West 
and  the  "she"  towns  of  the  East,  all  make  for 
the  breaking  up  of  the  home.  The  socialists 
argue  that  only  under  socialism  would  it  be  pos- 
sible to  have  more  and  better  homes  and  conse- 
quently a  better  famUy  relation.     Higher  wages. 


22  ESSENTIALS  OF  SOCIALISM 

a  shorter  work  day,  steady  employment,  the  elim- 
ination of  profits  from  the  industrial  world,  all 
of  which  they  claim  would  come  with  socialism, 
would  aid  greatly  in  developing  a  higher  and 
more  ideal  home  life  for  the  people. 

There  are  two  general  groups  of  anarchists  : 
(1)  the  Individualist  or  Philosophical  Anarchists, 
and  (2)  the  Anarchist  Communists.  Briefly,  the 
former  believe  in  the  peaceful  propagation  of  an- 
archistic doctrines,  and  maintain  that  a  stage  of 
anarchism  will  come  as  the  result  of  the  gradual 
extension  of  the  laissez-faire  policy  on  the  part  of 
the  government.  The  latter  advocate  the  use  of 
violent  and  revolutionary  measures  as  a  means 
of  bringing  about  the  desired  ideal. 

Nihilism  is  often  confused  with  both  socialism 
and  anarchism,  but  strictly  speaking  it  is  neither. 
As  Kirkup  has  pointed  out,^  the  name  of  nihilism 
"  is  often  erroneously  applied  to  the  whole  revo- 
lutionary movement "  in  Russia,  although  it  should 
properly  be  restricted  to  the  agitations  of  the 
period  1855-1870.  The  nihilists  bowed  before 
no  authority  of  any  kind,  and  accepted  no  prin- 
ciple on  faith.  "They  weighed  political  institu- 
tions and  social  reforms,  religion  and  the  family, 
in  the  balances  of  that  negative  criticism,  which 
•  History  of  Socialism,  pp.  257-258. 


SOCIAL  BETTERMENT  2$ 

was  their  prevailing  characteristic,  and  they  found 
them  all  wanting.  With  revolutionary  impatience 
they  rejected  everything  that  had  come  down  from 
the  past,  good  and  bad  alike.  They  had  no  re- 
spect for  art  or  poetry,  sentiment  or  romance." 
They  were  interested  in  the  matters  of  "daily 
bread  for  all"  and  an  elementary  education  for 
the  common  people. 

Socialism  is  not  Communism.  Under  socialism, 
although  there  would  be  collective  ownership  of  the 
means  of  production  and  exchange,  there  would  still 
be  private  ownership  of  income.  Communism, 
however,  goes  one  step  further  and  proposes  common 
ownership  of  income.  It  usually  advocates  equal- 
ity in  the  division  of  the  products  of  society.  So- 
cialism, on  the  other  hand,  is  opposed  to  any  and 
all  schemes  of  "dividing  up."  Communism  also 
differs  from  socialism  in  that  those  who  believe  in 
it  do  not  accept  the  doctrines  of  the  evolutionary 
development  of  society  or  of  the  necessity  of  ap- 
pealing primarily  to  the  working  class  in  order  to 
bring  about  the  adoption  of  communistic  ideas. 

Communism  usually  takes  the  form  of  colony 
or  community  experiments,  and  is  most  frequently 
known  as   Utopian   Socialism. ^     In   the   United 

•  See  pp.  39-40  for  a  more  detailed  explanation  of  Utopian 
Socialism. 


24  ESSENTIALS   OF  SOCIALISM 

States  it  is  represented  by  a  long  line  of  unsuc- 
cessful attempts  to  introduce  the  colony  mode  of 
life,  and  reached  its  point  of  greatest  popularity 
in  the  Bellamy  or  Nationalist  movement  during 
the  later  '80's  and  the  early  '90's. 

Socialism  is  not  Social  Reform.  The  present  day 
sees  a  widespread  interest  in  social  reform  meas- 
ures in  all  countries.  Social  reform  retains  the 
dominant  features  of  capitalism,  i.e.  the  private 
ownership  of  industry  and  the  two  economically 
antagonistic  classes,  the  workers  and  the  capital- 
ists. It  seeks  to  remove  only  the  more  flagrant 
evils  of  capitalism.  Its  advocates  propose  such 
remedial  measures  as  labor  and  factory  legislation, 
municipal  and  political  reforms,  and  an  extension 
of  the  functions  and  powers  of  the  government. 
Socialism,  on  the  other  hand,  would  supplant  capi- 
talism by  a  state  of  society  in  which  there  would 
be  a  democratically  organized  collective  ownership 
and  operation  of  the  means  of  production  and  ex- 
change. It  proposes  a  complete  and  radical  change 
from  our  present .  system,  but  only  by  peaceful 
means. 

For  a  number  of  years  social  reform  measures 
were  vigorously  opposed  by  the  socialists,  but  of 
late  there  has  been  considerable  discussion  regard- 
ing the  necessity  or  the  advisability  of  using  such 


SOCIAL  BETTERMENT  2$ 

"  half-way  "  means  as  a  method  of  gradually  bring- 
ing about  the  socialist  state.  But  even  though 
some  of  the  socialists,  possibly  a  majority,  take  this 
position,  they  differ  from  the  social  reformers  in 
that  they  consider  such  measures  only  as  a  means 
to  an  end,  the  end  being  socialism,  while  the  re- 
formers look  upon  these  measures  as  an  end  in 
themselves  and  feel  that  their  adoption  would 
result  in  the  improvement  and  retention  of  the 
present  system  of  capitalistic  industry  through 
the  removal  of  its  more  glaring  evils. 

Socialism  is  not  the  Single  Tax.  The  advocates 
of  the  single  tax  propose  to  abolish  all  taxes  save 
one,  a  single  tax  levied  upon  the  value  of  land 
exclusive  of  improvements.  It  is  claimed  that 
such  a  tax  would  be  just  and  expedient ;  that  it 
would  greatly  increase  production  by  exempting 
improvements  from  taxation  ;  that  it  would  abol- 
ish speculation  in  land ;  that  it  would  be  simple 
and  easy  of  administration ;  and  that  it  would 
materially  assist  in  bringing  about  a  more  equitable 
distribution  of  wealth.  The  single  taxers  accept 
the  doctrines  of  laissez-faire,  and  consequently 
believe  in  Individualism,  Competition,  and  Free 
Trade. 

It  is  argued  by  the  opponents  of  the  tax  that  it 
would  be  diflficult  to  administer ;  that  it  would  not 


26  ESSENTIALS   OF  SOCIALISM 

supply  a  sufficient  revenue  for  the  government; 
that  it  would  be  unjust  because  it  would  tax  only 
the  landowners;  that  it  would  tend  to  weaken 
the  idea  of  private  ownership  of  land ;  and  that  it 
would  lead  ultimately  to  the  government  owner- 
ship of  land  with  private  use  or  cultivation. 

Contrasting  the  single  tax  with  socialism,  it  is 
to  be  noted  that  the  advocates  of  the  former  rec- 
ognize only  one  form  of  exploitation,  rent,  and  but 
one  oppressor,  the  landlord,  both  of  which  they 
would  abolish.  Socialists,  on  the  other  hand,  argue 
that  profits  and  interest,  as  well  as  rent,  are  forms 
of  exploitation  and  can  be  gotten  rid  of  only  by 
abolishing  the  private  ownership  of  industry. 
Thus  logically  the  socialists  should  believe  in  the 
nationalization  of  land,  and  some  of  them  do ;  but 
it  is  in  connection  with  this  question  of  what  to  do 
with  the  land  that  the  ideas  of  the  socialists  are 
most  indefinite,  diverse,  and  impossible  of  classifi- 
cation. The  single  taxers  would  retain  the  domi- 
nant features  of  capitalism  with  its  economic 
classes,  with  competition  between  the  industrial 
units,  and  with  private  ownership  of  industry  and 
the  consequent  exploitation  of  the  workers,  all  of 
which  the  socialists  seek  to  abolish.  The  single 
taxers  also  differ  from  the  socialists  in  that  they 
do  not  recognize  the  existence  of  the  class  struggle. 


SOCIAL  BETTERMENT  2/ 

REFERENCES 
X.  Definition. 

Barker.     British  Socialism.     Ch.  1. 
Benson.     Socialism  Made  Plain.     Ch.  4. 
Blatchford.     Merrie  England.     Ch.  12. 
Britain  for  the  British.     Ch.  8. 

*  Ely.     Socialism  and  Social  Reform.     Part  1,  chs.  2-3* 
Flint.     Socialism.     Ch.  1. 

*  Richardson.     Industrial  Problems.     Part  2,  ch.  1. 
SoMBART.     Socialism  and  the  Social  Movement.     Pp. 

1-18. 

*  Spargo.     Socialism.     Ch.  1. 
Vail.     Modem  Socialism.     Ch.  2. 

3.  Democracy  and  Socialism. 

(a)  For  a  brief  but  excellent  exposition  of  the  Initia- 
tive, the  Referendum,  and  the  Recall  see  "  A  Primer 
of  Direct  Legislation  "  by  Parsons,  Pomeroy,  Tyson, 
and  others,  reprinted  from  The  Arena  of  May,  June, 
and  July,  1906. 

Regarding  the  application  of  these  democratic 
measures  to  industry  in  accordance  with  the  ideas 
of  the  socialists  see  the  following:  — 

(6)    Statement  by  Socialists. 

*  Ghent.     Socialism  and  Success.     Pp.  224  flf. 
Gronlund.     The  Cooperative  Commonwealth.     Chs. 

5,  7,  8. 

*  Mills.     The  Struggle  for  Existence.     Chs.  13-14. 

*  Vail.     Modern  Socialism.     Ch.  8. 

Wells.     New  Worlds  for  Old.     Ch.  9,  seo.  3. 

(c)    Criticism  by  Non-socialists. 

*  Anonymous.     The  Case  Against  Socialism.     Ch.  8. 

*  Flint.     Socialism.     Ch.  9. 

GuYOT.    Socialistic  Fallacies.    Book  9. 


28  ESSENTIALS  OF  SOCIALISM 

3.  Socialism  and  Government  Ownership. 

(a)  Socialism  and  Government  Ownership  Differentiated. 

Mills.     The  Struggle  for  Existence.     Ch.  38-39. 

*  Spargo.     The  Socialists;    Who  They  Are  and  What 

They  Stand  For.     Ch.  14. 
Vail.    Modem  Socialism.     Ch.  14,  sees.  5,  14. 

(6)    Exposition  of  Government  Ownership. 
Le  Rossignol  and  Stewart.     State  Socialism  in  New 

Zealand. 
Reeves.     State   Experiments   in  Australia  and  New 

Zealand. 
Seligman.    Principles   of  Economics.    Ch.  33,  sees. 

222-226. 

4.  Socialism  and  Cooperation. 

(a)    The  Evils  of  Competition. 

*  Blatchford.    Britain  for  the  British.     Ch.  9. 

*  Merrie  England.     Ch.  9. 

Ely.    Evolution  of  Industrial  Society.    Part  2,  chs. 

1-2. 
Reeve.     The  Cost  of  Competition. 
Vail.    Modem  Socialism.     Ch.  7. 

(6)   Socialism  and  Cooperation. 

Ensor.     Modem  Socialism.     Ch.  20. 

Ferri.     Socialism  and  Modem  Science.     Pp.  35-38. 

*  Kelly.     Twentieth  Century  Socialism.     Pp.  36-40. 

(c)    History  and  Ideals  of  the  Cooperative  Movement. 

Ackland  and  Jones.    Workingmen  Cooperators. 
Adams  and  Sumner.     Labor  Problems.     Book  2,  ch. 
10. 

*  AvES.     Cooperative  Industry. 

Bemis  and  Others.     History  of  Cooperation   in  the 
United  States. 


SOCIAL  BETTERMENT  29 

Cross.     Cooperative  Stores. 

Ely.     Labor  Movement  in  America.     Ch.  7. 

*  Fat.     Cooperation  at  Home  and  Abroad, 
HoLYOAKE.     The  Cooperative  Movement  of  To-day. 

*  The  History  of  Cooperation  in  England. 
Jones.     Cooperative  Production. 
Lloyd.     Labor  Co-partnership. 

Potter.     The  Cooperative  Movement  in  Great  Britain. 
Seager.     Introduction  to  Economies.     Pp.  513  ff. 

5.  Socialism  and  Profit-sharing. 

*  Adams  and  Sumner.  Labor  Problems.  Book  2,  ch.  9. 
Oilman.  Socialism  and  the  American  Spirit.  Ch.  9. 
Seager.     Introduction  to  Economies.     Pp.  510  ff. 

6.  Socialism  and  Anarchism. 

(a)  In  addition  to  the  following  references  see  the 
works  of  Bakounine,  Grave,  Hertzka,  KIrapotkine, 
Mackay,  Malato,  Michel,  Most,  Proudhon,  Stimer, 
and  Tolstoi  quoted  in  the  bibliography  at  the  con- 
clusion of  this  volume. 

(6)    The  Teachings  and  History  of  Anarchy. 
Bailie.     Josiah  Warren. 
DoNiSTHORPE.     Individualism. 

Law  in  a  Free  State. 
Ely.     Labor  Movement  in  America.    Ch.  10. 

French  and  German  Socialism.     Ch.  7. 

*  Eltzbacher.     Anarchism. 

HiLQUiT.     History  of  Socialism  in  the  United  States. 

Part  2,  ch.  3,  sec.  2. 
Kaufmann.     Utopias,  etc.     Ch.  10. 
KiRKUP.     History  of  Socialism.     Chs.  3,  10. 
LuM.     Economics  of  Anarchy. 
Mackay  and  Others.     A  Plea  for  Liberty. 
Menoer.    The  Right  to  the  Full  Produce  of  Labor. 
Ch.  7. 


30  ESSENTIALS  OF  SOCIALISM 

Rae.    Contemporary  Sooiaplism.    Ch.  8. 

Ritchie.    Natural  Rights. 

SoMBART.    Socialism  and  the  Social  Movement.    Pp. 

40-46. 
Spencer.     The  Man  wr&uz  the  State. 
Tucker.     Instead  of  a  Book. 

*  Yarros.    Anarchism  ;  Its  Aims  and  Methods. 

*  Zenker.    Anarchism. 

(c)   Socialism  and  Anarchism  Contrasted. 

Barker.     British  Socialism.     Ch.  30. 

*  Ely.     Socialism  and  Social  Reform.     Part  1,  ch.  9. 
Fabian  Essays.     Pp.  31-56,  157-184. 

GuYOT.     Socialistic  Fallacies.     Book  2,  chs.  6-7. 

*  E^ELLY.    Twentieth  Century  Socialism.     Pp.  31-33. 
La  Monte  and  Mencken.     Men  versus  the  Man. 
Macdonald.     The  Socialist  Movement.     Pp.  122-124. 

*  Plechanoff.    Anarchism  and  Socialism. 

Shaw.     The    Impossibilities   of   Anarchism.    Fabian 

Tract,  no.  45. 
Simons.     Socialism   versics  Anarchy.    Pocket  Library 

of  Socialism,  no.  31. 

*  Spargo.    Socialists;  Who  They  Are  and  What  They 

Stand  For.     Pp.  119-126. 
SoTHERAN.     Horace  Greeley,  etc.     Ch.  1. 
Tugan-Baranowsky.     Modem  Socialism,    etc.    Pp. 

169-185. 
Vail.    Modem  Socialism.     Ch.  14,  sec.  15. 

7.  Nihilism. 

*  Rae.     Contemporary  Socialism.     Ch.  9. 
KiRKUP.    History  of  Socialism.     Pp.  257  flf. 

8.  Socialism  and  Communism. 

(a)    History  and  Ideals  of  Communism. 

*  Guthrie.    Socialism  Before  the  French  Revolution. 

Ch.  1. 


SOCIAL  BETTERMENT  3 1 

*  Kaufmann.    Socialism.    Book  2,  chs.  3-5. 
Kautsky.     Communism  in  Central  Europe  in  the  Time 

of  the  Reformation. 
WooLSEY.     Communism  and  Socialism.     Ch.  2. 

(5)  Socialism  and  Communism  Contrasted. 

Barker.    British  Socialism.     Ch.  29. 
GuYOT.     Socialistic  Fallacies.    Book  1. 

*  Kelly.     Twentieth  Century  Socialism.     Pp.  33-36. 

*  Macdonald.     The  Socialist  Movement.     Pp.  122-124. 
ViLLiERS.    The  Socialist  Movement  in  England.    Part 

3,  ch.  7. 
(Also  note  references  under  "  Utopian  Socialism,'^ 
pp.  76-78). 

9.  Socialism  and  Social  Reform  Contrasted. 

*  Ely.     Evolution  of  Industrial   Society.     Part  2,  oh. 

14. 

*  Socialism  and  Social  Reform.     Part  IV. 

*  HiLQUiT.     Socialism  in  Theory  and  Practice.     Part  2, 

chs.  1-5. 
Kampffmeyer.     Changes  in  the  Theory,  etc.    Chs.  2, 

4,6. 
Katjtsky.     The  Class  Struggle.     Pp.  88-93. 
Knott.     Conservative  Socialism. 

zo.  Socialism  and  the  Single  Tax. 

(a)    History  and  Ideals  of  the  Single  Tax. 

See  especially  the  works  of  Henry  George  and 
the  files  of  The  Public,  a  single  tax  periodical, 
published  weekly  in  Chicago. 

*  Anonymous.     The  Story  of  My  Dictatorship. 
Bullock.    Introduction  to  the  Study  of  Economios. 

Ch.  16,  sec.  1. 


32  ESSENTIALS  OF  SOCIALISM 

Dawson.     The  Unearned  Increment. 

*  FiLLEBROWN.    The  A  B  C  of  Taxation. 
Post.     The  Single  Tax. 

Seager.     Introduction  to  Economics.     Pp.  517  flf. 

*  Sherman.    Natural  Taxation. 
Thackeray.    The  Land  and  the  Community. 
Wallace.    Land  Nationalization. 

(6)    Criticism  of  Single  Tax  Doctrines. 

Cox.     Land  Nationalization. 

Rae.     Contemporary  Socialism.     Ch.  12. 

*  Smart.     Taxation  of  Land  Values  and  the  Single  Tax. 
Stubbs.     Land  and  the  Laborer. 

*  Walker.     Land  and  its  Rent.    Pp.  141-182. 
Winn.     Property  in  Land. 

(c)  Socialism  and  the  Single  Tax  Contrasted. 

Ely.     Socialism  and  Social  Reform.     Part  1,  ch,  9. 
*HiLLQUiT.  Socialism  in  Theory  and  Practice.  Pp.  291- 

296. 
Simons.     Single  Tax  versus  Socialism.    Pocket  Library 

of  Socialism,  no.  6. 
Vail.    Principles    of   Scientific   Socialism.     Ch.    13, 

sec.  7. 

XI.  Socialism  and  the  Home. 

(a)  Statement  of  the  Socialist  Position. 

*  Bebel.    Woman  under  Socialism. 
Blatchford.     Britain  for  the  British.    Ch.  7. 

*  Ely.     Socialism  and  Social  Reform.     Part  1,  ch.  5. 
Engels.    The  Origin  of  the  Family,  Private  Property, 

and  the  State. 
Engels    and    Marx.    The  Communist   Manifesto. 
Pp.  39-41. 


SOCIAL  BETTERMENT  33 

*  Kautskt.    The  Class  Struggle.    Pp.  124-129. 
Kelly.    Twentieth  Century  Socialism.     Pp.  40-42. 
Kerr.    Socialism  and  the  Home.     Pocket  Library  of 

Socialism,  no.  28. 
Mills.     The  Struggle  for  Existence.     Ch.  40. 

*  Richardson.     Industrial  Problems.     Pp.  218-221. 
Spargo.     The  Substance  of  Socialism.     Pp.  53  ff. 

Socialists;  Who  They  Are  and  What  They  Stand 
For.     Pp.  126-133. 

*  Stoddart.  The  New  Socialism.  Ch.  10. 
Vail.  Modem  Socialism.  Ch.  14,  see.  3. 
Wells.    New  Worlds  for  Old.     Ch.  6. 

Socialism  and  the  Family. 

(6)    Criticism  of  the  Socialist  Position. 

*  Anonymous.     The  Case  Against  Socialism.     Chs.  11- 

12. 
Barker.     British  Socialism.     Ch.  25. 

*  Goldstein.     Socialism;     The   Nation  of  Fatherless 

Children.     Pp.  143-296. 

12.  Socialism  and  Religion. 

(a)   Statement  of  the  Socialist  Position. 

*  Ely.     Socialism  and  Social  Reform.     Part  1,  ch.  5. 
Ferri.     Socialism  and  Modem  Science.     Pp.  59-67. 
Mills.     The  Struggle  for  Existence.     Ch.  30. 
Richardson.     Industrial  Problems.     Pp.  221-224. 
Skelton.     Socialism.     Pp.  246  ff. 

*  Sparqo.     The     Spiritual    Significance    of    Modem 

Socialism. 

*  Socialists;   Who  They  Are  and  What  They  Stand 

For.    Pp.  126-133. 

*  Stoddart.    The  New  Socialism.     Ch.  1,  sec.  3;  ch. 

11. 
Untermann.     Science  and  Revolution.    Chs.  14-17. 
Wells.    New  Worlds  for  Old.    Ch.  9. 


34  ESSENTIALS  OF  SOCIALISM 

(ft)  Criticism  of  the  Socialist  Position. 

Anonymous.    The  Case  against  Socialism.    Ch.  10. 
Barker.     British  Socialism.     Chs.  26-27. 

*  Flint.     Socialism.     Ch.  11. 

*  Goldstein.    Socialism;    The   Nation  of  Fatherless 

Children.     Pp.  8-30,  59-142. 
Hartman.     Socialism  versus  Christianity. 
WooLSEY.     Communism  and  Socialism.  Pp.  238-249. 

13.  Socialist  Party  Organization. 

Mills.    The  Struggle  for  Existence.    Chs.  44-45. 
Richardson.     Industrial  Problems.     Part  2,  oh.  5. 
The  Socialist  Party.    Pocket  Library  of  Socialism, 
no.  33. 


CHAPTER  IV 

CLASSIFICATION    OF    THE    DIFFERENT    KINDS    OF 
SOCIALISTS 

One  of  the  most  important  causes  of  the  great 
confusion  and  misunderstanding  which  have  arisen 
in  connection  with  the  subject  of  socialism  is  the 
great  diversity  of  views  obtaining  among  those 
who  are  called  socialists.  It  is  but  natural  to 
expect  such  a  diversity  if  one  realizes  how  com- 
prehensive and  all-inclusive  are  the  doctrines  upon 
which  the  socialist  movement  is  based.  A  similar 
confusion  of  ideas  is  also  found  among  those  who 
believe  in  the  Christian  religion  or  in  the  reten- 
tion of  capitalism. 

An  examination  of  the  different  groups  or  move- 
ments among  the  socialists  discloses  several  points 
of  similarity.  All  socialists  severely  condemn  the 
wage  system  and  its  evils;  they  are  opposed  to 
what  they  describe  as  the  industrial  anarchy  and 
the  wastes  of  capitalism ;  they  place  the  interests 
of  society  above  those  of  the  individual ;  and  they 
insist  that  the  present  order  cannot  endure,  that 
it  must  pass  away  and  be  succeeded  by  a  stage  of 

35 


36  ESSENTIALS  OF  SOCIALISM 

society,  socialism,  which  they  believe  will  be  far 
superior  to  that  which  exists  to-day. 

Among  those  usually  called  socialists  it  is 
possible  to  distinguish  six  distinct  groups : 
(1)  Radicals;  (2)  Christian  Socialists;  (3)  Fa- 
bian Socialists ;  (4)  State  Socialists  ;  (5)  Utopian 
Socialists ;  and  (6)  Scientific  Socialists. 

Radicals.  Those  who  advocate  new  and  radi- 
cal measures  of  social  reform  are  frequently  and 
incorrectly  called  socialists.  This  is  true  of  labor- 
ites,  reformers,  and  radicals  of  all  kinds.  Many 
who  call  themselves  socialists  and  who  take  an 
active  part  in  the  socialist  agitation  are  in  reality 
nothing  more  than  humanitarians,  radicals,  or 
"  advanced  "  thinkers. 

Christian  Socialists.  Christian  socialists  may 
be  roughly  divided  into  two  groups.  The  first 
consists  of  those  who  preach  to  both  employer 
and  employee  the  doctrines  of  "  Love  ye  one  an- 
other" and  "Do  unto  others  as  ye  would  that 
others  should  do  unto  you,"  with  the  object  of 
bringing  about  better  industrial  and  social  rela- 
tions. They  believe  in  the  possibility  of  the 
application  of  Christianity  to  current  problems. 
They  are  social  reformers  working  for  the  re- 
moval of  certain  abuses  which  have  crept  into 
the  present  social  and  industrial  order.     The  sec- 


DIFFERENT  KINDS   OF  SOCIALISTS  37 

ond  group  is  made  up  of  those  who  believe  that 
the  ideals  of  Christianity  can  be  realized  only 
under  a  regime  of  socialism.  Neither  group  as 
a  rule  advocates  any  of  the  fundamental  princi- 
ples of  scientific  or  Marxian  socialism,  or  believes 
in  the  organization  of  a  political  party  to  carry 
out  the  ideals  of  its  members. 

Another  method  of  classification  discloses  two 
rather  well-defined  movements  among  the  Chris- 
tian socialists  :  first,  that  of  the  Protestant  Chris- 
tian Socialism,  found  for  the  most  part  in  England 
with  a  small  following  in  the  United  States  and 
in  some  of  the  European  countries ;  and  secondly, 
that  of  Catholic  Christian  Socialism,  which  has 
its  stronghold  in  Catholic  Europe.  The  two 
movements  have  separate  and  distinct  histories. 

Fabian  Socialists.  The  term  "  Fabian  "  is  most 
frequently  used  to  designate  the  members  of  the 
Fabian  Society  of  London,  although  at  times  it  is 
also  applied  to  the  adherents  of  the  principles  ad- 
vanced by  that  society.  The  Fabians  are  found 
only  in  England.  The  Fabian  Society  was  or- 
ganized in  1884,  and  although  it  has  but  about  1500 
members,  it  exerts  a  much  more  powerful  influence 
than  its  numbers  indicate.  It  has  in  its  ranks 
many  of  the  most  prominent  men  and  women  of 
England. 


38  ESSENTIALS  OF  SOCIALISM 

The  Fabians  believe  in  the  abolition  of  the 
private  ownership  of  land  and  industrial  capital  so 
far  as  possible,  and  in  the  organization  of  society 
upon  a  collective  basis  in  so  far  as  it  is  expedient. 
They  are  decidedly  opportunist  in  their  demands, 
advocating  government  and  municipal  ownership, 
educating  and  appealing  to  all  classes,  and  striving 
to  gain  their  ends  without  reference  to  party  lines 
or  affiliations,  always  using  the  means  nearest  at 
hand  regardless  of  its  character.  As  an  organiza- 
tion, the  Fabians  have  never  founded  a  separate 
political  party.  In  later  years  they  have  been  con- 
tent to  work  chiefly  through  the  Labor  Party  of 
Great  Britain. 

State  Socialists.  Socialists  of  the  Chair.  State 
socialists  believe  in  extending  the  functions  of  the 
state  into  fields  hitherto  occupied  by  the  in- 
dividual, the  idea  being  to  bring  about  economic 
and  social  conditions  which  will  work  for  the  wel- 
fare of  the  people.  They  would  use  the  present 
state  as  a  means  of  accomplishing  great  economic 
and  social  changes,  such  as  government  and 
municipal  ownership  of  various  forms  of  capital, 
governmental  irrigation,  reclamation  and  forestry 
projects,  workingmen's  insurance,  and  various 
other  reforms. 

Some  modern  or  scientific  socialists  object  to 


DIFFERENT  KINDS   OF  SOCIALISTS  39 

state  socialism  on  the  ground  that  it  is  nothing 
more  than  government  ownership,  and  that  conse- 
quently it  would  merely  replace  the  capitalistic 
exploitation  of  the  workers  with  their  exploitation 
by  the  government.  They  claim  that  it  is  objec- 
tionable because  it  is  favored  by  the  ruling  class 
as  a  means  of  quelling  the  clamor  of  the  workers 
for  socialism,  because  it  will  tend  to  put  off  the 
estabUshment  of  the  cooperative  commonwealth, 
and  because  it  has  as  its  ideal,  a  military,  landlord, 
and  police  state,  which  is  not  favorably  inclined 
towards  democracy  and  an  organized  socialistic 
working  class. 

Utopian  Socialists.  The  Utopian  socialists  ad- 
vocate some  plan  or  arrangement,  usually  commu- 
nistic in  nature,  in  accordance  with  which  they 
desire  to  organize  society  upon  a  perfect  basis, 
thereby  removing  all  objectionable  conditions  for 
all  time  to  come.  They  do  not  recognize  the 
evolutionary  character  of  society,  but  basing  their 
arguments  upon  eternal  truths,  say  "  Go  to ;  let  us 
construct  a  society  after  our  own  hearts."  They 
hold  that  if  mankind  could  only  be  induced  to 
accept  their  teachings,  they  could  put  their  plans 
for  the  regeneration  of  society  into  practice  at 
once,  and  they  would  remain  henceforth  the  per- 
manent state.     The   Utopians    wish   to   free   all 


40  ESSENTIALS  OF  SOCIALISM 

society,  and  consequently  appeal  to  all  classes,  but 
more  particularly  to  the  educated  and  the  rich. 

Scientific  or  Marxian  Socialists.  Scientific  so- 
cialism is  based  upon  the  writings  of  Karl  Marx 
and  Friedrich  Engels,  particularly  upon  those  of 
the  former,  dating  from  the  publication  of  the 
"  Communist  Manifesto  "  in  1848.  These  two  Ger- 
man radicals  wished  to  make  a  science  of  socialism, 
to  put  it  upon  a  scientific  basis  in  contrast  with 
the  "mish-mash"  of  critical  statements,  false 
theories,  and  pictures  of  future  society  promul- 
gated by  the  founders  of  different  sects,  which  in 
the  words  of  Engels  made  up  the  "  eclectic,  aver- 
age socialism "  of  the  middle  part  of  the  nine- 
teenth century. 1  They  set  out  to  explain  the 
origin  of  capitalistic  society,  to  analyze  and  account 
for  its  dominant  characteristics,  and  to  attempt 
an  interpretation  of  its  future  development.  The 
outcome  of  their  work  is  seen  in  that  group  of 
doctrines  or  theories,  known  as  "  Scientific  Social- 
ism, "  which  lies  at  the  foundation  of  the  inter- 
national socialist  movement. ^ 

*  Engels,  Socialism,  Scientific  and  Utopian^  p.  27. 

2  It  is  impossible  tx)  offer  an  interpretation  of  the  theories  of 
scientific  socialism  or  of  the  present  attitude  of  the  socialist 
movement  towards  these  theories  which  cannot  and  which  will 
not  be  seriously  questioned  by  many.  In  the  following  pages 
an  effort  has  been  made  to  state  the  situation  carefully  and  fairly. 


DIFFERENT  KINDS   OF  SOCIALISTS  4I 

The  scientific  socialists  appeal  primarily  to  the 
members  of  the  working  class  whether  they  are 
engaged  in  intellectual  or  in  manual  pursuits. 
With  the  rallying  cry  of  "  The  proletarians  of  the 
world  have  nothing  to  lose  but  their  chains ;  they 
have  a  world  to  win  !  "  ^  they  call  upon  the  work- 
ingmen  of  all  countries  to  unite  in  opposition  to 
the  capitalist  or  employing  class.  The  economic 
and  social  freedom  of  the  working  class,  and  inci- 
dentally of  society  at  large,  so  they  declare,  can 
come  only  through  the  activity  of  a  united  and 
class-conscious  socialistic  proletariat.  It  is  be- 
cause of  these  things  that  the  scientific  socialist 
movement  is  known  as  a  "  working-class  move- 
ment," although  its  propaganda  appeals  to  numer- 
ous enthusiasts  and  humanitarians  in  all  walks  of 
life. 

Originally  the  scientific  socialist  movement  was 
based  upon  the  following  principles:  (a)  The 
Evolution  of  Society ;  (J)  The  Economic  Inter- 
pretation of  History  with  its  accompanying  doc- 
trine of  the  Class  Struggle ;  (c)  The  Marxian 
Labor  Theory  of  Value ;  (c?)  The  Marxian  Theory 
of  Surplus  Value;  (e)  The  Socialist  Explanation  of 
Crises ;  (/)  The  Right  of  Labor  to  its  Full  Prod- 
uct; (^)  The  Theory  of  the  Increasing  Concen- 
'  Communist  Manifesto.,  p.  67. 


42  ESSENTIALS  OF  SOCIALISM 

tration  of  Industry ;  (A)  The  Theory  of  Increasing 
Misery ;  and  (i)  The  Catastrophe  Theory.  The 
years  that  have  elapsed  since  Marx  and  Engels 
wrote  have  brought  many  changes  in  the  interpre- 
tation of  these  doctrines,  as  well  as  in  the  attitude 
of  the  socialist  movement  towards  them. 

(a)  The  Evolution  of  Society. 

The  scientific  socialists  hold  that  there  is  noth- 
ing certain  but  change.  Society  has  passed  through 
various  stages  :  it  has  never  remained  stationary, 
and  consequently  will  continue  to  evolve.  The 
stages  through  which  it  has  passed  have  always 
been  defined  by  the  dominant  mode  of  production, 
—  the  use  of  different  kinds  of  tools  in  the  pro- 
duction of  wealth,  resulting  in  the  formation  of 
distinct  types  of  social  organization.  Thus  the 
hand-loom  made  feudalism  possible,  while  the 
machine  and  the  steam-engine  brought  about  capi- 
talism. All  races  or  countries  have  not  passed 
through  all  stages ;  changes  have  been  gradual ; 
and  the  remnants  of  preceding  stages  exist  to-day, 
even  in  those  countries  which  are  predominantly 
capitalistic.  It  is  claimed  that  the  next  stage 
into  which  society  will  evolve  will  be  that  of 
socialism.  The  reasons  for  this  contention  will 
be  discussed  in  Chapter  V. 


DIFFERENT  KINDS  OF  SOCIALISTS  43 

(()  The  Economic  Interpretation  of  History  and 
the  Class  Struggle. 

The  economic  interpretation  of  history  in  the 
hands  of  the  scientific  socialists  is  a  method  of  ex- 
plaining the  history  of  mankind  and  of  prophesy- 
ing the  ultimate  advent  of  a  regime  of  socialism. 

History  has  most  frequently  been  interpreted 
from  one  of  the  following  points  of  view  or  from 
a  combination  of  several  of  them :  — 

(1)  Political,  which  resolves  itself  into  a  state- 
ment that,  "  Throughout  all  history  there  can  be 
discerned  a  definite  movement  from  monarchy  to 
aristocracy,  and  from  aristocracy  to  democracy, 
and  that  there  is  a  constant  progress  from  abso- 
lutism to  freedom  both  in  idea  and  in  institution." 

(2)  Religious,  which  is  to  the  effect  that  one 
can  interpret  history  from  the  standpoint  of  the 
religious  and  ethical  ideas  of  a  people. 

(3)  The  Great  Man  Theory,  which  seeks  its 
explanation  of  history  in  the  acts,  thoughts,  and 
leadership  of  great  men. 

(4)  Physical  environment,  which  claims  that 
the  history  of  a  nation  is  shaped  by  its  moun- 
tains, rivers,  climate,  and  other  physiographic 
features. 

(5)  Racial  characteristics,  which  explains  his- 


44  ESSENTIALS   OF  SOCIALISM 

tory  from  the  standpoint  of  the  racial  traits  of  a 
people. 

The  scientific  socialists  deny  the  validity  of 
all  of  these  methods  of  interpreting  history  and 
propose  instead  the  "economic  interpretation  of 
history."  This  doctrine  is  variously  known  as 
"  economic  determinism,"  "  historical  materialism," 
and  the  "materialistic  conception  of  history."  It 
was  not  original  with  Marx  and  Engels,  but  it 
was  they  who  stated  it  in  the  most  satisfactory 
manner  and  who  first  attempted  to  make  exten- 
sive use  of  it  in  interpreting  the  history  of  man- 
kind and  in  prophesying  the  ultimate  advent  of 
socialism. 

In  the  words  of  Engels  the  economic  interpre- 
tation of  history  is  to  the  effect  that  "in  every 
historical  epoch,  the  prevailing  mode  of  economic 
production  and  exchange,  and  the  social  organiza- 
tion necessarily  following  from  it,  form  the  basis 
upon  which  is  built  up,  and  from  which  alone 
can  be  explained,  the  political  and  intellectual 
history  of  that  epoch ;  that  consequently  the 
whole  history  of  mankind  (since  the  dissolution  of 
primitive  tribal  society,  holding  land  in  common 
ownership)  has  been  the  history  of  class  strug- 
gles, contests  between  exploiting  and  exploited, 
ruling  and  oppressed  classes ;  that  the  history  of 


DIFFERENT  KINDS  OF  SOCIALISTS  45 

these  class  struggles  forms  a  series  of  evolutions 
in  which,  nowadays,  a  stage  has  been  reached 
where  the  exploited  and  oppressed  class  —  the 
proletariat  —  cannot  attain  its  emancipation  from 
the  sway  of  the  exploiting  and  ruling  class  —  the 
bourgeoisie  —  without  at  the  same  time,  and  once 
and  for  all,  emancipating  society  at  large  from 
all  exploitation,  oppression,  class  distinctions,  and 
class  struggles."* 

Briefly  and  concisely  stated,  the  proposition  re- 
solves itself  into  a  declaration  that  "  all  history  is 
the  history  of  class  struggles,"  the  character  of 
the  contending  classes  being  fixed  by  the  prevail- 
ing mode  of  wealth  production  and  exchange. 
In  the  past  these  struggles  have  resulted  "  either 
in  the  revolutionary  reconstitution  of  society  at 
large,  or  in  the  common  ruin  of  the  contending 
classes."  At  present,  so  the  scientific  socialists 
argue,  the  struggle  has  narrowed  down  to  a  con- 
test between  the  workers  on  the  one  hand  and 
the  capitalists  on  the  other.  The  former  can 
have  no  interests  in  common  with  the  latter. 
Both  are  arrayed  in  hostile  camps  and  must  con- 
tinue to  war  upon  each  other  until  finally,  through 
the  united  action  of  the  workers  upon  the  polit- 
ical or  upon  the  industrial  field,  or  upon  both,  the 
*  Preface  to  the  Communist  Manifesto,  p.  8. 


46  ESSENTIALS    OF  SOCIALISM 

capitalist  class  will  be  vanquished,  capitalism  will 
be  destroyed,  and  socialism  will  be  ushered  into 
existence. 

It  has  sometimes  been  urged  by  the  critics  of 
Marxian  socialism  that  its  followers  pit  one  class 
against  the  other,  in  short  that  they  make  the 
class  struggle.  The  socialists  reply  that  the  class 
struggle  is  not  of  their  making,  but  that  it  is  the 
outgrowth  of  the  prevailing  system  of  industry  which 
groups  together  on  the  one  hand  a  constantly  in- 
creasing large  class  of  propertyless  workers,  and 
on  the  other  hand  a  constantly  decreasing  class 
of  the  men  who  hire  them,  or  the  capitalists. 
The  socialists  merely  call  attention  to  the  exist- 
ence of  the  class  struggle  and  urge  the  workers 
to  make  use  of  it  in  striving  for  better  conditions 
under  which  to  live  and  work.  But  granting 
that  they  do  not  make  the  class  struggle,  it  is 
urged  by  some  that  the  importance  which  they 
give  this  doctrine  in  their  propaganda  and  the 
manner  in  which  its  recognition  by  the  working- 
class  is  encouraged  by  them,  cannot  help  but 
cause  both  classes  to  become  increasingly  bitter 
towards  each  other  and  thus  prevent  any  united 
action  looking  towards  their  mutual  benefit. 

The  importance  of  the  economic  interpretation 
of    history   was    greatly   exaggerated    by   Marx, 


DIFFERENT  KINDS   OF  SOCIALISTS  47 

Engels,  and  the  early  socialists.  In  later  years 
its  advocates  have  softened,  and  in  some  regards 
have  almost  entirely  reshaped,  certain  parts  of 
the  doctrine,  so  that  it  has  lost  a  number  of  its 
harsh  and  dogmatic  characteristics. 

The  critics  of  this  method  of  interpreting  his- 
tory have  raised  the  following  objections  :  — 

(1)  It  is  a  fatalistic  doctrine,  placing  too  much 
stress  upon  the  influence  of  environment,  and  en- 
tirely neglecting  to  take  into  consideration  the 
actions  of  a  free  will. 

(2)  It  overlooks  the  part  played  by  great  men 
or  leaders  in  the  history  of  a  nation.  In  late 
years  there  has  been  a  noticeable  return  of  his- 
torians to  the  "great  man  theory."  This,  no 
doubt,  has  been  due  to  a  very  great  extent  to  the 
prevailing  popularity  of  Nietzsche's  philosophy, 
and  to  the  widespread  acceptance  of  New  Thought, 
Christian  Science,  and  allied  movements,  all  of 
which  lay  great  stress  upon  the  influence  of  mind 
over  matter. 

(3)  It  does  not  consider  the  influence  of  spirit- 
ual or  ethical  factors,  or  of  racial  traits. 

(4)  It  exaggerates  in  all  connections,  political, 
social,  and  economic,  the  importance  of  the  class 
struggle. 

(6)  It  is  socialistic. 


48  ESSENTIALS  OF  SOCIALISM 

(6)  It  leads  to  exaggeration  by  attempting  to 
explain  all  history  from  one  point  of  view,  a 
thing  which  is  impossible  because  of  the  great 
complexity  of  forces  which  go  to  shape  the  history 
of  a  nation. 

(c)  The  Marxian  Labor  Theory  of  Value. 

Second  only  in  importance  to  the  economic 
interpretation  of  history,  but  in  no  way  dependent 
upon  it,  is  the  Marxian  labor  theory  of  value.  In 
analyzing  value,  Marx  deals  only  with  conditions 
as  they  exist  in  a  stage  of  capitalism,  and  conse- 
quently defines  wealth  as  an  "  accumulation  of  com- 
modities." A  commodity  is  any  product  of  labor 
that  satisfies  a  human  want.  As  such  it  has  two 
values,  a  use  value,  and  an  exchange  value  ;  that  is, 

(1)  having  use  value,  it  satisfies  a  human  want,  and 

(2)  having  exchange  value,  it  can  be  exchanged 
upon  the  market  for  other  commodities,  or  for 
money  (which  is  a  commodity).  It  is  with  the 
latter  kind  of  value,  i.e.  exchange  value,  that  Marx 
is  concerned. 

Although  price  is  exchange  value  expressed  in 
terms  of  dollars  and  cents,  exchange  value  is  not 
price.  Prices  may  fluctuate  widely  during  an  hour 
or  a  day,  yet  the  value  of  an  article  during  that 
time  may  remain  the  same,  just  as  the  level  of  the 


DIFFERENT  KINDS   OF  SOCIALISTS  49 

ocean  is  not  affected  by  the  rising  or  the  falling  of 
its  waves.     Value  is  more  stable  than  price. 

Marx  contends  that  in  order  that  commodities 
may  be  exchanged,  they  must  have  some  element 
in  common.  Therefore  it  is  this  element  that 
must  be  used  in  explaining  their  value.  It  must 
also  be  used  in  measuring  their  value.  Commodi- 
ties, being  the  product  of  labor,  have  a  common 
element  in  the  form  of  human  labor  power  which 
has  been  expended  in  their  production.  It  is  this 
which  creates  and  measures  exchange  value.  The 
useless,  lazy,  or  inefficient  expenditure  of  labor- 
power  does  not  create  value;  for,  as  Marx  states, 
that  "which  determines  the  magnitude  of  the 
value  of  any  article  is  the  amount  of  labor  socially 
necessary  for  its  production,"  and  "  socially  neces- 
sary labor"  is  defined  as  being  that  which  is 
"  required  to  produce  an  article  under  the  normal 
conditions  of  production  and  with  the  average 
degree  of  skill  and  intensity  prevalent  at  that 
time."^  The  unit  employed  by  Marx  in  measur- 
ing the  value  of  any  commodity  is  the  amount  of 
socially  necessary  labor  contained  in  a  day  of 
simple  unskilled  labor.  It  is  necessary,  therefore, 
to  reduce  skilled  labor  to  terms  of  unskilled  labor, 
but,  according  to  Marx,  this  is  not  a  difficult  task 
6  Capital,  vol.  i.,  p.  46. 


50  ESSENTIALS   OF  SOCIALISM 

inasmuch  as  skilled  labor  "  counts  only  as  simple 
labor  intensified,  or,  rather,  as  multiplied  simple 
labor."  "Experience,"  he  further  declares, 
"shows  that  this  reduction  is  constantly  being 
made."  6 

In  his  explanation  of  value  Marx  includes  men- 
tal as  well  as  physical  labor.  He  also  maintains 
that  "labor  is  not  the  only  source  of  material 
wealth.  .  .  .  As  William  Petty  puts  it,  labor  is 
its  father  and  the  earth  its  mother." '  Labor, 
therefore,  according  to  Marx,  doe%  not  create  all 
wealth :  it  creates  only  exchange  values. 

One  can  say  without  danger  of  contradiction 
that  the  Marxian  labor  theory  of  value  has  been 
the  one  proposition  in  the  Marxian  system  most 
vigorously,  and  in  some  instances  most  unintelli- 
gently,  attacked  by  the  opponents  of  socialism. 
All  critics  contend  that  it  is  not  in  harmony  with 
the  facts  of  the  business  world.  The  more  impor- 
tant arguments  urged  against  it  may  be  briefly 
summarized  as  follows :  — 

(1)  The  Marxian  theory  is  not  a  satisfactory 
explanation  of  value  because,  by  considering  only 
those  things  upon  which  labor  has  been  expended, 
Marx  excludes  from  his  analysis  a  large  number 
of  articles  which  possess  value. 

•  Capital,  vol.  L,  p.  51.  ''Ibid.,  p.  50. 


DIFFERENT  KINDS   OF  SOCIALISTS  5 1 

(2)  It  is  argued  that  it  is  impossible  to  reduce 
skilled  labor  to  terms  of  unskilled  labor. 

(3)  Labor  is  not  the  only  element  possessed  in 
common  by  things  that  have  value. 

(4)  Marx  does  not  explain  why  it  is  that  the 
expenditure  of  socially  necessary  labor  creates 
value.  He  is  satisfied  with  the  mere  statement 
that  such  is  the  case  and  offers  no  proof. 

(5)  In  the  matter  of  exchange  value  there  are 
two  parties  to  be  taken  into  consideration :  (a)  the 
producer,  and  (6)  the  consumer.  Marx  attempts 
to  analyze  value  from  the  standpoint  only  of  the 
producer. 

(6)  A  commodity  to  have  exchange  value  must 
have  time,  place,  and  form  utility.  Primarily 
Marx  considers  form  utility ;  indirectly  he  con- 
siders place  utility ;  but  he  completely  ignores 
time  utility.  The  existence  of  time  utility,  even 
without  the  expenditure  of  labor-power,  creates 
exchange  value. 

(7)  Marx  errs  when  he  states  that  mere  ex- 
change, i.e.  buying  and  selling,  does  not  create 
value. 

(8)  It  is  shown  that  Marx  himself  recognized 
the  impossibility  of  harmonizing  his  labor  theory 
of  value  with  actual  economic  conditions,  and 
that  he  abandoned  it  in  the  third  volume  of  his 


52  ESSENTIALS  OF  SOCIALISM 

"Capital"  for  a  "price  of  production  theory," 
"  price  of  production  "  equalling  the  cost  of  pro- 
duction plus  the  average  rate  of  profit.® 

Various  disciples  of  Marx  and  a  few  non- 
socialist  apologists  have  tried  to  explain  away 
the  errors  of  this  theory.  Among  the  foremost 
of  the  latter  is  Werner  Sombart,  who  suggests 
that  "  Marx  may  have  been  describing  not  what 
is,  but  what,  in  his  opinion,  ought  to  be ;  all  ex- 
change value  ought  to  be  created  by  labor,  and 
when  capital  is  in  the  proper  hands,  it  will  be  so." 
Nothing  in  any  of  Marx's  writings  could  lead  one 
to  such  a  conclusion,  because  he  consistently  states 
that  exchange  value  is  created  by  the  socially  nec- 
essary labor  embodied  in  a  commodity,  and  at  no 
time  does  he  state  that  such  ought  to  be  the  case.^ 

Although  the  labor  theory  of  value  is  one  of 
the  most  important  in  the  Marxian  system,  one  is 
surprised  to  find  the  ignorance  regarding  its  real 
significance  and  meaning  which  prevails  among 
the  socialists  of  all  countries.  This  has  led  many 
to  claim  that  a  belief  in  socialism  does  not  stand 
or  fall  with  the  acceptance  or  denial  of  the  labor 

*  See  especially  Bohm-Bawerk,  Karl  Marx  and  the  Close 
of  his  System,  chs.  2,  3. 

"  See  Bohm-Bawerk,  op.  cit.,  ch.  5,  for  an  excellent  criti- 
cism of  Sombart's  position. 


DIFFERENT  KINDS  OF  SOCIALISTS  53 

theory  of  value.  Nevertheless,  as  will  be  seen 
from  the  subsequent  sections  of  this  chapter,  its 
denial  compels  a  denial  of  the  greater  portion  of 
the  Marxian  system,  for  upon  it  are  based  a  num- 
ber of  the  fundamental  theories  of  socialism. 

(c?)  The  Marxian  Theory  of  Surplus  Value. 

To  explain  the  historical  development  of,  and 
the  primary  cause  for,  the  existence  of  capitalism 
was  the  task  which  Marx  attempted.  He  found 
an  explanation  for  the  former  in  the  economic  in- 
terpretation of  history.  The  latter,  he  declared, 
lay  in  the  exploitation  of  the  workers  through  the 
appropriation  of  a  portion  of  their  products  (sur- 
plus values)  by  the  employing  or  capitalist  class. 
These  surplus  values  arise  through  the  ownership 
of  the  means  of  production  by  the  capitalists  who 
hire  men  to  labor  for  them,  paying  in  return  a 
wage  less  than  the  exchange  value  of  the  products 
which  the  workers  create.  This,  in  brief,  is  the 
Marxian  theory  of  surplus  value,  and  although 
most  socialists  give  Marx  the  credit  for  its  formu- 
lation, its  antecedents  are  found  in  the  writings  of 
earlier  radicals,  especially  in  those  of  the  so-called 
Early  English  Socialists. ^^     Marx,  however,  elabo- 

w  The  group  of  writers  known  as  "  The  Eariy  English  Social- 
ists" were  William  Thompson  (1786-1833),  W,  Godwin  (1756- 


54  ESSENTIALS   OF  SOCIALISM 

rated  ideas  which  they  had  advanced  and  so  re- 
shaped them  as  to  produce  what  to  many  appears 
to  be  a  more  thorough  and  complete  explanation 
of  the  exploitation  of  the  working  class. 

Marx  maintains  that  surplus  value,  like  exchange 
value,  does  not  and  cannot  arise  through  mere  ex- 
change, i  e.  through  buying  and  selling.  It  comes 
into  being  only  through  the  following  process: 
Labor-power  is  a  commodity,  and  is  bought  and 
sold  as  is  any  other  commodity.  Consequently,  its 
value  is  fixed  by  the  same  laws,  that  is,  by  the 
amount  of  socially  necessary  labor  required  to  pro- 
duce it.  The  laborer  receives  a  wage  sufficient 
only  to  maintain  his  standard  of  living,  or,  in  other 
words,  sufficient  only  to  support  himself  and  family. 
By  laboring  six  hours  (necessary  labor')  he  can  pro- 
duce commodities  equal  in  value  to  the  wage  which 
he  receives.  But  instead  of  laboring  six  hours 
per  day  the  employer  hires  him  to  work  ten  hours. 
Thus  it  is  that  the  employer  receives  the  product 
of  ten  hours'  labor  and  returns  to  the  worker  as 
wages  the  value  of  that  part  of  the  product  which 
has  been   created  in  six   hours.     The   difference 


1836),  J.  F.  Bray,  C.  Hall  (1745-1826),  J.  Gray,  and  T.  Hodg- 
skin.  H.  S.  Foxwell,  in  an  introductory  chapter  to  Menger, 
Bight  to  the  Whole  Produce  of  Labor ^  presents  a  most  excel- 
lent discussion  of  these  writers  and  their  work. 


DIFFERENT  KINDS  OF  SOCIALISTS  55 

between  these  amounts,  or  the  product  of  four 
hours'  labor,  the  capitalist  keeps  for  himself.  The 
latter  is  what  Marx  calls  '•'•  surplus  value" 

The  money  or  capital  which  in  any  industry  is 
used  to  pay  wages,  Marx  calls  "  variable  capital " ; 
that  which  is  used  to  purchase  raw  materials, 
machinery,  etc.,  he  calls  ^'■constant  capital."  This 
differentiation  is  made  because  from  his  point  of 
view  machines,  raw  materials,  etc.,  do  not  affect 
the  value  of  the  product ;  they  do  not  create  ex- 
change value,  —  they  merely  transfer  their  value  to 
the  commodities  which  they  assist  in  producing. 
Labor  alone  creates  exchange  value ;  it  alone  in- 
troduces the  variable  element.  By  creating  ex- 
change value,  it  also  creates  surplus  value  for  the 
employer  which  he  appropriates  from  the  products 
of  the  workers  in  the  form  of  rent,  interest,  and 
profits. 

The  amount  of  surplus  value  which  an  employer 
may  appropriate  can  be  increased  by  the  prolonga- 
tion of  the  working-day  (^absolute  surplus  value'), 
or  by  the  curtailment  of  the  necessary  labor  time  " 
(relative  surplus  value),  which  curtailment  can  be 
brought  about  by  the  increased  productiveness  of 

^*  The  necessary  labor  time,  as  noted  above,  is  the  number  of 
hours  required  by  the  laborer  to  create  products  equal  in  value 
to  the  amount  which  he  receives  as  wages. 


56  ESSENTIALS  OF  SOCIALISM 

the  laborer,  by  the  decreased  cost  of  raw  materials, 
machinery,  etc.,  or  by  the  decreased  cost  of  the 
laborer's  subsistence. 

Thus  Marx  claims  that  "the  appropriation  of 
unpaid  labor  is  the  basis  of  the  capitalist  mode  of 
production  and  of  the  exploitation  of  the  worker 
that  occurs  under  it;  that  even  if  the  capitalist 
buys  the  labor-power  of  his  laborer  at  its  full 
value  as  a  commodity  on  the  market,  he  yet  ex- 
tracts more  value  from  it  than  he  paid  for;  and 
that  in  the  ultimate  analysis  this  surplus  value 
forms  those  sums  of  value  from  which  are  heaped 
up  the  constantly  increasing  masses  of  capital  in 
the  hands  of  the  possessing  classes."^ 

The  Great  Contradiction.  In  connection  with 
the  subject  of  surplus  value,  there  arises  a  most 
interesting  problem  known  as  "The  Great  Contra- 
diction." Briefly  stated,  it  is  to  the  effect  that  if, 
as  Marx  claims,  labor  alone  creates  exchange  value, 
hence,  also,  surplus  value,  and  if  it  is  through  the 
appropriation  of  the  surplus  value  that  the  capi- 
talists become  wealthy,  why  is  it  that  they  are  so 
eager  to  replace  labor  by  means  of  machinery, 
which,  according  to  Marx,  creates  no  surplus  value? 
Or  to  state  it  somewhat  differently,  how  does 
Marx  explain  why  a  capitalist  hiring  much  labor 
"  Engels,  Socialism,  Scientific  and  Utopian,  p.  43. 


DIFFERENT  KINDS   OF  SOCIALISTS  57 

and  using  very  little  machinery  (called  by  Marx 
a  '•'■high  composition  of  capital''''^  secures  no  more 
than  the  average  rate  of  profits  obtained  by  an 
employer  who  uses  much  machinery  and  very 
little  labor  (a  "  low  composition  of  capital ")? 

In  meeting  this  query  Marx  abandons  his  so- 
cially necessary  labor  theory  of  value,  and  contends 
that  in  actual  circulation  commodities  exchange 
in  accordance  with  what  he  calls  their  "price  of 
production,"  i.e.  the  cost  of  their  production  plus 
the  average  rate  of  profit.  The  average  rate  of 
profit,  so  he  claims,  is  the  same  for  all  capitals  re- 
gardless of  their  composition,  and  depends  upon 
the  proportion  existing  between  the  whole  volume 
of  capital  and  the  whole  volume  of  surplus  value 
created,  the  latter  being  distributed  to  all  capital, 
constant  as  well  as  variable.  As  a  consequence 
of  the  competition  which  exists  between  all  capi- 
talists for  as  large  a  share  of  this  amount  of  sur- 
plus value  as  they  can  obtain,  all  procure  no  more 
and  no  less  than  the  average  rate  of  profits,  re- 
gardless of  the  composition  of  the  capitals  em- 
ployed. ^^ 

Marx's  theory  of  surplus  value  depends  directly 
upon  his  labor  theory  of  value.     If  the  latter  is 

"  Cf.  Bbhm-Bawerk,  op.  cit.,  ch.  3;  Marx,  Capital,  voL 
lii.,  chs.  8-12. 


58  ESSENTIALS  OF  SOCIALISM 

disproved,  the  former  falls  with  it.  Bohm-Bawerk, 
the  eminent  Austrian  economist,  has  made  a  most 
careful  analysis  of  these  two  theories  in  his  ad- 
mirable volume,  "Karl  Marx  and  the  Close  of  his 
System,"  and  in  concluding  his  discussion  of  the 
latter's  theory  of  surplus  value,^*  maintains  that, 

(1)  A  theory  of  value  is  not  concerned  with  the 
sum  total  of  all  commodities  and  the  manner  in 
which  their  differences  are  averaged  out ;  it  has 
to  do  only  with  explaining  their  several  exchange 
relations,  i.e.  the  proportions  in  which  separate 
commodities  exchange  for  one  another ; 

(2)  Marx's  law  of  value  does  not  govern  the 
movement  of  prices,  nor  "does  it  govern  with 
undiminished  authority  the  exchange  of  commod- 
ities in  certain  primary  stages  in  which  the  change 
of  value  into  '  prices  of  production '  had  not  yet 
been  accomplished  ;  "  and 

(3)  In  a  complicated  economic  system  the 
"  prices  of  production  "  are  not  regulated  by  the 
Marxian  law  of  value,  which,  through  the  "  prices 
of  production,"  governs  the  actual  exchange  rela- 
tions. Marx,  on  the  other  hand,  claims  that  such 
is  the  case,  since  the  total  value  of  the  commod- 
ities, determined  by  the  law  of  value,  in  its  turn, 
determines    the    total    surplus   value,   the   latter 

"  Chapter  3. 


DIFFERENT  KINDS   OF  SOCIALISTS  59 

regulating  the  amount  of  the  average  profit  and 
therefore  the  general  rate  of  profit. 

(e)  The  Socialist  Explanation  of  Crises. 

Growing  out  of  the  Marxian  theory  of  surplus 
value  is  the  socialist  explanation  of  panics  or 
business  crises.  It  is  maintained  that  inasmuch 
as  labor  creates  all  exchange  value  and  receives 
only  a  small  portion  of  it  in  return  as  wages,  it 
necessarily  follows  that  labor  cannot  purchase 
all  that  it  produces.  It  is  impossible  for  the 
capitalist  class  to  consume  all  that  remains,  and 
as  a  consequence  the  surplus  products  accumulate, 
finally  bringing  about  a  state  of  over-production, 
in  other  words,  a  panic  or  a  business  depression. 
The  possibility  of  over-production  is  further 
heightened  by  the  anarchy  of  capitalistic  indus- 
try, which  induces  each  entrepreneur  to  produce  as 
much  as  he  is  able  with  the  idea  of  getting  con- 
trol of  as  large  a  share  of  the  market  as  possible. 
The  antecedents  of  this  theory  are  found  in  the 
writings  of  the  Early  English  Socialists  and  also 
in  those  of  Rodbertus,  a  German  economist  of 
note. 

The  great  objection  to  the  socialist  theory  of 
crises  is  that  it  is  impossible  to  explain  all  crises 
by  means  of  the  one  cause  of  over-production,  or, 


60  ESSENTIALS   OF  SOCIALISM 

as  it  is  sometimes  called,  "under-consumption." 
Panics  may  be  monetary,  financial,  or  industrial, 
and  may  occur  because  of  any  one  of  the  following 
reasons  or  because  of  a  combination  of  several  of 
them :  — 

(1)  Lack  of  confidence. 

(2)  The  abuse  or  undue  extension  of  credit, 

either   by   excessive  bank  credits  or  by 
inflated  issues  of  currency. 

(3)  The  readjustment  of  conditions  made  neces- 

sary by  inevitable  changes  in  values  or 
prices. 

(4)  A  general  fall  in  prices. 

(5)  A  general  change  in  prices  due  to  changes 

in  the  monetary  system. 

(6)  Contraction  of  the  circulating  medium  or 

an  insufficient  volume  of  money. 

(7)  Railroad,  land,  or  other   kinds  of    specu- 

lation. 

(8)  War. 

(9)  F'ailure  of  crops,  bad  seasons,  etc. 

The  position  of  the  socialists  is  also  attacked 
on  the  ground  that  if  panics  are  caused  only  by 
over-production,  or  under-consumption,  of  com- 
modities, how,  then,  is  it  possible  for  a  panic  to  pass 
away  ?  A  very  large  number  of  those  commod- 
ities,   which    at    such    times,   according    to    the 


DIFFERENT  KINDS   OF  SOCIALISTS  6l 

socialists,  have  been  over-produced,  are  of  an 
indestructible  and  permanent  nature  and  cannot 
rot  away  or  wear  out ;  the  workers  are  unem- 
ployed and  have  no  funds  with  which  to  make 
purchases ;  the  industrial  establishments  are  in- 
active and  need  no  supplies  ;  how,  then,  can  the 
accumulated  stores  be  disposed  of  in  order  that 
a  demand  for  them  may  arise,  thus  bringing  about 
a  revival  of  industry  ? 

(/)  The  Right  of  Labor  to  the  Full  Product. 

Scientific  socialists  maintain  that  as  labor 
creates  all  exchange  values,  it  should  receive 
them ;  in  other  words,  it  should  receive  its  full 
product.  They  claim  that  under  the  wage  sys- 
tem, or  capitalism,  such  a  thing  is  impossible,  be- 
cause, as  has  been  explained,  the  capitalist  appro- 
priates a  part  of  these  values  (surplus  values)  in 
the  form  of  rent,  interest,  and  profits.  With  the 
collective  ownership  and  operation  of  industry, 
however,  there  would  be  no  capitalist  class,  no 
surplus  values,  and  no  rent,  interest,  or  profits, 
thus  making  it  possible  for  labor  to  receive  its  full 
product. 

The  socialists  are  opposed  to  the  payment  of 
rent,  interest,  and  profits.  They  ridicule  the 
justification  of  the  payment  of  interest  as  a  re- 


62  ESSENTIALS   OF  SOCIAUSM 

ward  for  superintendence,  or  as  a  payment  for 
services,  for  risks  taken,  for  abstinence,  or  for 
waiting.  They  claim  that  rent,  as  a  portion  of 
surplus  value,  is  an  unjust  charge  for  a  natural 
agent,  which  agent,  land,  has  been  appropriated 
by  the  individual  and  made  his  private  property 
to  the  exclusion  of  society.  They  contend  that 
profits  are  nothing  more  nor  less  than  the  fruits  of 
robbery  or  expropriation  on  the  part  of  the  capi- 
talists. 

In  discussing  the  right  to  the  full  product,  one 
must  be  careful  to  distinguish  between  it  and 
(1)  the  Right  to  Subsistence,  and  (2)  the  Right  to 
Labor.  The  former  is  commonly  accepted,  and  is 
exemplified  in  our  poor  laws,  asylums,  poorhouses, 
etc.  The  Right  to  Labor  may  be  further  subdi- 
vided into  (1)  the  Right  to  Search  for  Work, 
which  all  civilized  countries  grant  to  their  citi- 
zens, and  (2)  the  Right  to  Demand  Work,  which 
means  that  any  one  without  employment  may  de- 
mand and  receive  it  at  the  hands  of  the  govern- 
ment. This  latter  privilege  is  not  recognized  by 
any  country. 

The  claim  of  the  scientific  socialists  that 
labor  should  receive  its  full  product  is  attacked 
in  the  first  place  on  the  ground  that  it  is  based 
upon  a  false  premise,    i.e.   the  labor  theory  of 


DIFFERENT  KINDS  OF  SOCIALISTS  63 

value.  Secondly,  it  is  argued  that  it  is  impossible 
to  determine  accurately  what  the  full  product  of 
labor  amounts  to.  Approximation  alone  is  pos- 
sible, but  approximation  would  not  give  labor  its 
full  product,  and  consequently  would  result  in 
partial  exploitation.  Thirdly,  the  total  product 
of  a  number  of  individuals  working  together  is 
always  greater  than  the  total  product  of  the  same 
individuals  working  separately.  To  whom  does 
the  extra  product  belong,  —  to  the  workers,  to 
society,  which  has  made  their  cooperation  possible, 
or  to  the  capitalist  who  has  brought  them  to- 
gether with  sufficient  land  and  capital  so  as  to 
make  possible  the  production  of  this  extra  amount 
of  wealth  ? 

(^)  The  Concentration  of  Industry  and  the  Cen- 
tralization of  Wealth. 

The  scientific  socialists  claim  that  in  the  capi- 
talistic system  of  production  there  is  ever  present 
a  tendency  towards  a  concentration  of  industry 
and  a  centralization  of  wealth.  They  hold  that 
industrial  history  discloses  the  fact  that  the  unit 
of  business  organization  has  steadily  increased  in 
size  as  it  has  evolved  from  the  individual  entre- 
preneur through  the  partnership  and  the  joint 
stock  company  to  the  modern  corporation.     The 


64  ESSENTIALS  OF  SOCIALISM 

market  also  has  widened,  growing  from  a  local 
into  a  national,  and  finally  into  an  international, 
market.  This  fact,  together  with  the  greater 
cost  of  modern  processes,  has  necessitated  vast 
accumulations  of  capital  in  order  to  carry  on  the 
production  of  wealth. 

As  the  result  of  competition  Jaetween  corpora- 
tions engaged  in  similar  lines  of  industry,  trusts 
have  been  formed.  Further  competition  between 
these  trusts,  the  difficulty  of  reinvesting  divi- 
dends, and  the  recognition  of  the  economies  of 
combination  and  of  large-scale  production  have 
caused  larger  trusts,  or  holding  companies,  to  be 
organized,  until  to-day,  according  to  the  socialists, 
the  more  important  branches  of  industry  are  cen- 
tralized in  the  hands  of  a  small  group  of  capital- 
ists. Along  with  this  concentration  of  industry 
goes  the  centralization  of  wealth.  This  tendency 
is  said  to  prevail  in  all  fields,  in  manufacturing, 
agriculture,  and  mining,  as  well  as  in  the  whole- 
sale and  retail  business.  This  concentration  is 
expected  to  continue  until  all  lines  of  industry 
have  been  fully  concentrated  and  thoroughly 
organized. ^^  A  few  capitalists  will  then  own  those 
things  which  all  of  society  uses  for  the  purpose  of 
supplying  its  needs.     The  socialists  claim  that  this 

^  Concentration  of  control,  as  well  as  concentration  of  owner- 
ship, is  taken  into  consideration  by  the  socialists. 


DIFFERENT  KINDS  OF  SOCIALISTS  6$ 

state  of  affairs  cannot  long  exist,  and  that  in  order 
to  safeguard  the  interests  of  its  citizens,  society 
will  be  forced  to  undertake  the  collective  ownership 
and  operation  of  those  industries. 

The  critics  of  Marxian  economics  declare  that 
the  theory  of  the  concentration  of  industry  is  not 
in  accord  with  the  facts  of  the  business  world. 
In  the  first  place,  petty  industrial  enterprises  and 
establishments  persist  and  even  increase  in  num- 
ber. Secondly,  in  agriculture  large-scale  farming 
has  failed,  as  is  shown  by  the  breaking  up  of  the 
plantations  of  the  South  and  the  bonanza  wheat 
farms  of  the  West  and  Northwest.  Intensive 
cultivation  has  proved  its  superiority  over  exten- 
sive cultivation.  Thirdly,  in  the  retail  trade 
small  stores  persist  in  spite  of  the  growth  in  the 
size  and  number  of  department  stores.  Fourthly, 
socialists  exaggerate  the  tendency  towards  con- 
centration. Lastly,  an  individual  corporation,  if 
well  organized  and  satisfactorily  managed,  can 
compete  successfully  with  a  trust  or  holding  com- 
pany provided  the  latter  obtains  no  unfair  advan- 
tage in  the  form  of  rebates,  railway  tariffs,  or 
political  influence.  The  tendency  in  the  develop- 
ment of  governmental  legislation  is  in  direct  line 
with  the  policy  of  providing  equality  of  oppor- 
tunity among  competitors  in  all  fields. 


66  ESSENTIALS  OF  SOCIALISM 

(7t)  The  Theory  of  Increasing  Misery. 

One  of  the  fundamentals  of  the  Marxian  system 
which  played  a  very  prominent  part  in  the  earlier 
years  of  the  socialist  propaganda,  but  which  to-day 
has  been  abandoned  by  a  number  of  scientific 
socialists,  is  the  theory  of  increasing  misery. 

Marx  declared  that  along  with  the  concentration 
of  industry  the  rich  grow  richer,  while  the  oppres- 
sion, servitude,  degradation,  and  exploitation  of 
the  workers  steadily  increase.  The  latter  sink 
more  and  more  deeply  into  slavery,  ignorance,  and 
bestiality,  and  become  more  miserable,  absolutely 
as  well  as  relatively.  But  with  this  condition  of 
affairs  there  "grows  the  revolt  of  the  working 
class,  a  class  always  increasing  in  numbers,  and 
disciplined,  united,  organized  by  the  very  mech- 
anism of  the  process  of  capitalist  production 
itself,"  ^'  until  finally  the  workers  rise  against  their 
misery  and  degradation,  overthrow  the  capitalist 
class  and  bring  about  socialism. 

The  explanation  of  the  promulgation  of  this 
theory  by  Marx  is  found  in  the  economic  and 
social  conditions  existing  in  Europe  during  his  life- 
time. The  changing  forms  of  industry  had  thrown 
thousands  of   men,  women,  and  children  out  of 

M  Capital,  vol.  L,  pp.  836-837. 


DIFFERENT  KINDS   OF  SOCIAUSTS  6/ 

work;  poverty,  bestiality,  and  discontent  were 
present  on  all  sides ;  labor  laws  were  of  scant  im- 
portance ;  trades-unions  were  weak ;  and  deplor- 
able conditions  existed  among  the  workers  in  the 
factories  and  upon  the  farms. 

This  theory,  however,  has  been  abandoned  by 
the  leaden  of  the  socialist  movement  because  they 
have  realized,  first,  that  it  is  impossible  for  an 
oppressed,  enslaved,  and  degraded  class  to  free  it- 
self (one  cannot  expect  "  political  omnipotence  to 
result  from  economic  impotence  "),  and  secondly, 
that  the  conditions  of  the  workers  have  become  in- 
creasingly more  satisfactory  through  the  activities 
of  trade-unions  and  cooperative  enterprises,  and 
as  a  result  of  labor  and  factory  laws,  the  widening 
sphere  of  governmental  activities,  welfare  work  on 
the  part  of  the  employers,  and  various  other  in- 
fluences. It  is  still  accepted,  however,  by  a  large 
number  of  socialists  in  all  countries,  and  is  used 
by  them  as  one  of  the  most  valuable  and  telling 
arguments  of  their  propaganda. 

(%)  The  Catastrophe  Theory. 

The  catastrophe  theory  merely  explains  the 
manner  in  which  Marx  thought  that  capitalistic 
society  would  be  supplanted  by  socialism.  In 
brief,  it  may  be  stated  as  a  belief  that  the  present 


68  ESSENTIALS   OF  SOCIALISM 

order  of  things  is  destined  to  disappear  in  a  grand 
catastrophe. 

As  has  already  been  explained,  Marx  claimed 
that  economic  development  must  necessarily  lead 
to  the  complete  concentration  of  industry  on  the 
one  hand,  and  to  the  increasing  misery  of  the 
workers  on  the  other.  Capitalism  creates  more 
wealth  than  it  can  consume,  surplus  values  ac- 
cumulate, and  as  the  years  pass  panics  will  occur 
with  increasing  frequency.  Finally  a  time  comes 
when  the  powers  of  production  can  expand  no 
further  under  a  capitalistic  system ;  vast  armies  of 
unemployed  oppressed  workers  will  exist,  com- 
posed of  men  who  will  necessarily  be  driven  by 
their  increasing  misery  to  overthrow  capitalism 
and  inaugurate  the  cooperative  commonwealth. 
In  the  words  of  Marx,  "the  monopoly  of  capital 
becomes  a  fetter  upon  the  mode  of  production 
which  has  sprung  up  and  flourished  along  with, 
and  under  it.  Centralization  of  the  means  of  pro- 
duction and  socialization  of  labor  at  last  reach  a 
point  where  they  become  incompatible  with  their 
capitalist  integument.  This  integument  is  burst 
asunder.  The  knell  of  capitalist  private  property 
sounds.  The  expropriators  are  expropriated."^^ 
Thus  Marx  thought  that  the  change  would  be  in 
"  Capital,  vol.  i.,  p.  837. 


DIFFERENT  KINDS   OF  SOCIALISTS  69 

the  nature  of  a  social  revolution,  a  sudden  and 
complete  change  from  capitalism  to  socialism. 

The  great  objection  to  this  theory  is  that  it  in- 
duces those  who  believe  in  it  to  look  forward  only 
to  the  ideal  socialist  state  and  thus  neglect  to 
attempt  the  removal  of  the  evils  of  our  present 
system.  It  encourages  them  to  hope  that  things 
will  grow  increasingly  worse  so  that  socialism 
may  come  all  the  more  quickly. 

Any  discussion  of  this  theory  resolves  itself 
into  a  controversy  between  those  who  believe  in 
revolutionary  and  those  who  believe  in  evolu- 
tionary changes.  The  tendency  to-day  among 
scientific  socialists  is  away  from  a  belief  in  this 
theory.  This  is  because  they  feel  that  any  changes 
in  capitalism  tending  towards  socialism  must  be 
gradual  and  evolutionary  in  character.  Some 
also  recognize  the  fact  that  in  spite  of  all  proph- 
ecies to  the  contrary,  the  forces  of  production 
have  not  outgrown  the  present  needs  of  society 
and  that  capitalism  still  has  many  years  of  life 
ahead  of  it.  Consequently,  the  socialists  are  lay- 
ing more  and  more  stress  upon  the  necessity  of 
removing  present-day  evils.  They  seem  to  have 
learned  from  experience  that  they  cannot  propose 
only  a  negative  programme,  but  that  they  must 
offer  something  positive,  something  constructive  in 


70  ESSENTIALS  OF  SOCIAUSM 

nature.  This  change  of  position  is  shown  by  their 
more  favorable  attitude  in  later  years  towards 
such  matters  as  trade-unionism,  cooperative  en- 
terprises, labor  and  factory  legislation,  working- 
men's  insurance,  and  municipal  and  government 
ownership. 

Classification  of  Scientific  Socialists. 

There  are  two  general  groups  of  scientific  so- 
cialists :  (1)  Orthodox  Marxists  or  Marxians,  and 
(2)  Revisionists. 

(1)  The  Orthodox  Marxists  or  Marxians  accept 
in  toto  the  theories  of  Marx,  as  originally  formu- 
lated by  him,  and  attack  very  bitterly  all  who 
suggest  changes  or  modifications  of  any  sort. 
They  oppose  reform  or  remedial  measures,  such 
as  municipal  and  government  ownership,  labor  and 
factory  legislation,  trade-union  activities,  and  the 
like.  They  look  forward  only  to  a  socialist  re- 
gime, and  can  see  nothing  good  either  in  capitalism 
or  in  anything'  other  than  socialism.  They  are 
revolutionary  rather  than  evolutionary  in  their 
point  of  view.  This  group  is  rapidly  decreasing 
in  importance  in  all  countries.  In  the  United 
States  it  is  represented  by  the  almost  extinct  So- 
cialist Labor  Party  and  by  the  "  Impossibilists  " 
of  later  years. 


DIFFERENT  KINDS  OF  SOCIALISTS  7 1 

(2)  Revisionism  is  a  comparatively  late  move- 
ment and  dates  approximately  from  the  publica- 
tion of  a  series  of  articles  by  Edward  Bernstein 
in  Die  Neue  Zeit  in  1898,  later  issued  in  book 
form  under  the  title  of  "  Die  Voraussetzungen  des 
Sozialismus  und  die  Aufgaben  der  Sozialdemo- 
kratie."^^  The  revisionists  accept  the  doctrines 
of  Marx  as  a  basis  for  their  economic  and  political 
ideas,  but  hold  that  revision  is  necessary  in  many 
respects.  This  is  especially  true  of  the  theory  of 
the  concentration  of  industry,  the  theory  of  in- 
creasing misery,  the  catastrophe  theory,  and  the 
economic  interpretation  of  history  with  its  accom- 
panying doctrine  of  the  class  struggle.  They 
still  desire  and  agitate  for  the  socialistic  coopera- 
tive commonwealth,  but  lay  main  stress  upon 
practical  and  immediate  ameliorative  measures. 
Unlike  the  Marxians,  they  claim  that  the  work 
being  done  by  the  socialists  in  trade-unions  and 
cooperative  societies  and  by  their  active  partici- 
pation in  the  affairs  of  capitalistic  governments 
is  of  paramount  importance.  They  hold  that  so- 
cialism can  come  only  as  the  result  of  a  long 
series  of  evolutionary  changes,  and  that  it  is  ad- 
visable, therefore,  to  improve  present  living  and 

"  Translated  by  Edith  C.  Harvey  under  the  title  of  Evolif 
tionary  Socialism. 


72  ESSENTIALS   OF  SOCIALISM 

working  conditions  so  as  to  prepare  the  workers 
for  its  coming. 

The  spread  of  revisionism  in  Europe,  especially 
in  Germany,  has  not  been  very  rapid.  On  the 
other  hand,  the  socialist  movement  in  the  United 
States  is  almost  wholly  of  a  revisionist  or  oppor- 
tunist character. 

The  revisionists  may  be  further  subdivided  into 
(1)  those  socialists  who  make  use  of  all  oppor- 
tunities, even  to  the  extent  of  compromising  with 
other  parties  in  order  to  increase  the  socialist  fol- 
lowing, who  seem  to  think  only  of  the  immediate 
present  and  who  lose  sight  entirely  of  the  socialist 
ideal  of  a  cooperative  commonwealth;  and  (2) 
those  who  do  not  compromise  with  other  parties, 
but  who  use  reform  measures  only  as  a  means  to 
an  end,  the  end  being  socialism. 

By  some,  syndicalism  is  classed  as  scientific 
socialism,  by  others  as  anarchism,  and  by  still 
others  as  a  form  of  labor  organization.  It  con- 
tains certain  characteristics  of  all  of  these  move- 
ments and  yet,  accurately  speaking,  it  is  not  any 
of  them. 

"  Syndicalism,  or  the  new  unionism,  is  the  most 
characteristic  contribution  made  by  France  to  the 
revolutionary  working-class  movement."      It  is 


DIFFERENT  KINDS  OF  SOCIALISTS  73 

confined  for  the  most  part  to  a  rapidly  growing 
and  very  active  following  in  France  and  Italy, 
although  a  few  adherents  may  be  found  in  all 
countries.  In  brief,  its  creed  is  "that  the  working 
class  must  work  out  its  own  salvation  by  its  own 
organs,  by  direct  and  not  by  deputed  action,  and 
that  the  syndicat  or  labor  union,  chief  of  these 
organs,  is  to  be  regarded  not  merely  as  an  instru- 
ment for  securing  partial  alleviations  of  the  exist- 
ing capitalistic  system  or  as  a  recruiting-ground 
for  socialist  parties,  but  as  itself  the  instrument 
of  revolution  and  the  cell  of  the  future  social  or- 
ganism." ^^  Its  followers  deplore  the  degeneracy  of 
the  modern  socialist  movement  which  they  claim 
has  become  bourgeois  in  character.  They  are  op- 
posed to  socialist  participation  in  parliamentary 
government,  and  hence  object  to  political  action 
as  a  means  of  obtaining  their  demands.  Their 
most  favored  weapon  is  the  general  strike.  They 
are  pessimists  in  that  they  ignore  the  immense 
progress  made  by  humanity,  and  insist  that  the 
workers  are  in  the  most  desperate  straits,  from 
which  they  can  be  rescued  only  by  radical  and 
revolutionary  measures.  They  hold  to  the  harsh- 
est interpretation  of  the  class  struggle,  and  object 
to  the  participation  of  "intellectuals"  in  the  labor 
"  Skelton,  Socialism,  pp.  267-268. 


74  ESSENTIALS   OF  SOCIALISM 

movement.  They  claim  that  as  there  is  no  saviour 
on  earth  or  in  heaven,  the  workers  alone,  through 
their  unions  or  syndicats^  must  achieve  their  eman- 
cipation from  the  thraldom  of  capitalism.  The 
syndicalists  call  upon  the  unions  to  "take  over 
whatever  functions  they  can  snatch  from  the  em- 
ployer and  from  the  state,  preparing  for  the  day 
when  they  will  supersede  both  entirely,"  and  will 
thus  be  able  to  inaugurate  the  reign  of  free  coop- 
erative labor,  by  means  of  which  a  multitude  of 
loosely  federated  autonomous  unions  will  be  estab- 
lished, the  members  of  which  will  labor  in  the 
workshops  without  masters.  Thus  syndicalism 
differs  "from  pure  and  simple  trade-unionism  in 
its  revolutionary  aims  and  its  adherence  to  the 
class  struggle  doctrine,  from  anarchism  in  its  ex- 
clusively proletarian  appeal  and  its  stress  upon  con- 
structive measures,  and  from  orthodox  socialism  in 
its  distrust  of  political  action  and  counter-emphasis 
on  purely  proletarian  weapons  and  institutions."  ^ 

REFERENCES 

z.  Christian  Socialism. 

See  especially  the  works  of  Kingsley  and  Maurice 
as  quoted  in  the  bibliography. 
Adderlet.     Meditations  for  Christian  Socialists. 
■  Babker.     British  Socialism.     Ch.  28. 

«  Skelton,  Socialism,  p.  269. 


DIFFERENT  KINDS   OF  SOCIALISTS  75 

Barry.     Christianity  and  Socialism. 
Behrends.     Socialism  and  Christianity. 
Carter.     Christian  Socialism  in  England. 
Clifford.     Socialism    and    the    Teaching  of  Christ. 

Fabian  Tract,  no.  78. 
Ely.     Socialism  and  Social  Reform.     Part  1,  ch.  9. 

*  French  and  German  Socialism.     Ch.  16. 
GiBBiNS.     English  Social  Reformers.     Ch.  5. 
Oilman.     Socialism  and  the  American  Spirit.     Ch.  7. 
Gohre.     The    Evangelical-Social   Movement  in  Ger- 
many. 

Headlam.     Christian  Socialism.     Fabian  Tract,  no.  42. 

Herron.     The  Christian  State. 

Hughes.     The  Manliness  of  Christ. 

Kaufmann.     Charles  Kingsley,  Christian  Socialist. 

*  Christian  Socialism. 

Laveleye.     The  Socialism  of  To-day.     Chs.  7-8. 

Masterman.     F.  D.  Maurice. 

Mathews.     The  Social  Teachings  of  Jesus. 

Noel.     Socialism  in  Church  History. 

Peabody.     Jesus  Christ  and  the  Social  Question. 

*  Rae.     Contemporary  Socialism.     Ch.  7. 

*  Rauschenbusch.     Christianity  and  the  Social  Crisis. 
Sprague.     Socialism  from  Genesis  to  Revelation. 
Stoddart.     The  New  Socialism.     Ch.  12. 

*  Stubbs.     Charles  Kingsley  and  the  Christian  Socialist 

Movement. 
A  Creed  for  Christian  Socialists. 
Christ  and  Economics. 
Woodward.     Christian  Socialism  in  England. 

Catholic  Christian  Socialism. 
Ely.     French  and  German  Socialism.     Pp.  257-262. 

*  Kaufmann.     Christian  Socialism.     Ch.  5. 

*  Laveleye.     The  Socialism  of  To-day.     Ch.  8. 
Nitti.     Catholic  Socialism. 

SoDERNi.    Socialism  and  Catholicism. 


'je  ESSENTIALS  OF  SOCIAUSM 

3.  Fabian  Socialism. 

Ely.     Socialism  and  Social  Reform.    Appendix  II. 

*  Fabian  Essays.     Especially  pp.  xi-xli. 

*  KiRKUP.     History  of  Socialism.     Pp.  399-400. 
Shaw.    Fabianism  and^the  Empire. 

The   Fabian   Society;    Its  Early  History.    Fabian 
Tract,  no.  41. 

4.  State  Socialism. 

Barker.     British  Socialism.     Ch.  32. 
Bryce.    a  Short  Study  of  State  Socialism. 
Dawson.     Bismarck  and  State  Socialism. 
Ely.     French  and  German  Socialism.     Ch.  15. 
Socialism  and  Social  Reform.     Part  1,  ch.  9. 
Graham.     Socialism,  New  and  Old.     Chs.  9-12. 
Kaufmann.     Christian  Socialism.     Ch.  7. 

*  Kautsky.    The  Class  Struggle.     Pp.  109-112. 

*  KiRKUP.    History  of  Socialism.     Ch.  11. 
Laveleyb.     The  Socialism  of  To-day.     Ch.  12. 

*  Rae.     Contemporary  Socialism.     Chs.  6,  11. 
Smith.     Economic  Aspects  of  State  Socialism. 
Vail.    Modem  Socialism.     Ch.  14,  sees.  5,  14. 

5.  Utopian  Socialism. 

(a)   Sources. 

See  especially  the  writings  of  Aristotle,  F.  U. 
Adams,  Babeuf,  Bacon,  Bellamy,  Blanc,  Cabet, 
Campanella,  Fourier,  Harrington,  More,  Morris, 
Owen,  Plato,  Saint-Simon,  and  Weitling. 

(6)    History  of  Utopian  Socialism. 

Barker.   The  Political  Thought  of  Plato  and  Aristotle. 
BoNAR.     Philosophy     and     Political    Economy,  eto. 

Book  1,  chs.  1-2;  book  2,  chs.  1,  4. 
Booth.     Robert  Owen,  etc. 
Saint-Simon  and  Saint-Simonism. 


DIFFERENT  KINDS   OF  SOCIALISTS  yj 

Buonarroti.    History  of  Babeuf  s  Conspiracy. 

*  Ely.    Freneli  and  German  Socialism.     Chs.  2-6. 
Flower.    The  Century  of  Sir  Thomas  More. 
GiBBiNS.     English  Social  Refonners.     Ch.  2. 
Graham.     Socialism,  New  and  Old.     Chs,  2-3. 

*  Guthrie.     Socialism   before   the  French  Revolution. 

Chs.  1-5. 
HoLYOAKE.     Life  and  Last  Days  of  Robert  Owen. 
Jones.     The  Life,  Times,  and  Labors  of  Robert  Owen. 

*  Kaufmann.     Utopias,  etc. 

KiRKUP.     History  of  Socialism.     Chs.  2-4. 
Packard.     Life  of  Robert  Owen. 

*  PoDMORE.     Robert  Owen. 

Sargent.     Robert  Owen  and  his  Social  Philosophy. 

Seebohm.     The  Oxford  Reformers. 

WooLSEY.     Communism  and  Socialism.     Chs.  2-4. 

(c)  Utopian    Socialism    and   Scientific   Socialism    Con- 

trasted. 

*  Engels.     Socialism,  Utopian  and  Scientific. 

Landmarks  of  Scientific  Socialism. 
Ensob.  Modem  Socialism.  Ch.  1. 
GuYOT.     Socialistic  Fallacies.     Book  1;  book  2,  chs. 

1,3. 
Mills.     The  Struggle  for  Existence.  '  Ch.  19. 

*  Plechanofp.     Anarchism  and  Socialism.     Ch.  1. 

*  Skelton.     Socialism.     Ch.  4. 

SoMBART.    Socialism  and  the  Social  Movement.    Pp. 

31-39. 
Spargo.    Socialists;   Who  They  Are  and  What  They 

Stand  For.     Ch.  2. 
♦     Socialism.     Pp.  16-53. 

Substance  of  Socialism.     Part  1. 

(d)  Utopian  Experiments. 

Ballou.    History  of  the  Hopedale  Community. 
Bole.    The  Harmony  Society. 


78  ESSENTIALS   OF  SOCIALISM 

Broome.  The  Last  Days  of  the  Ruskm  Cooperative 
Association. 

CoDMAN.  Brook  Farm;  Historic  and  Personal  Me- 
moirs. 

•  CuLLEN.    Adventures  in  Socialism. 
Eastlake.     Oneida  Community. 
Frothingham.     George  Ripley.     Chs.  3-4. 

•  HiLQuiT.    History  of  Socialism  in  the  United  States. 

Part  1. 

•  Hinds.    American  Communities,  etc. 

Kautskt.     Communism    in    Central    Europ>e   in  the 

Time  of  the  Reformation. 
Kent.  Cooperative  Communities  in  the  United  States. 
LocKwooD.     The  New  Harmony  Communities. 
NoRDHOFF.    The  Comimimistic  Societies  of  the  United 

States. 
Notes.     History  of  American  Socialisms. 
Perkins  and  Wick.     History  of  the  Amana  Society. 
Randall.    History  of  the  Zoar  Society. 
Shaw.     Icaria. 

SoTHERAN.     Horace  Greeley,  etc. 
Swift.     Brook   Farm;    Its   Members,  Scholars,  and 

Visitors. 

6.  Scientific  Socialism. 

(a)   General  References. 

The  references  to  the  subject  of  scientific  social- 
ism are  without  number.  Among  the  volumes  of  a 
more  general  and  comprehensive  nature  the  most 
satisfactory  are  the  following:  — 

Cohen.     Socialism  for  Students. 

Ely.  Socialism  and  Social  Reform. 

Flint.     Socialism. 

HiLQurr.    Socialism  in  Theory  and  Practice. 

KiRKUP.    History  of  Socialism. 


DIFFERENT  KINDS   OF  SOCIALISTS  79 

Rae.     Contemporary  Socialism. 

Skelton.     Socialism. 

SoMBART.     Socialism  and  the  Social  Movement. 

Spargo.     Socialism. 

Socialists;    Who  They  Are  and  What  They  Stand 
For. 

Tugan-Baranowsky.     Modem  Socialism  in  its  His- 
torical Development. 

(6)   Sources. 

For  the  sources  of  the  principles  of  scientific 
socialism,  consult  the  writings  of  Bebel,  Engels, 
Kautsky,  LassaUe,  Liebknecht,  Marx,  Rodbertus, 
and  Vandervelde. 

(c)    For  a  general  discussion  of  the  principles  of  scientific 
socialism  see  the  following:  — 

AvELiNG.     The  Students'  Marx. 

*  BouDiN.     The  Theoretical  System  of  Kari  Marx. 
Ely.     Socialism  and  Social  Reform. 

Ensor,     Modem  Socialism. 

*  Flint.     Socialism. 

GoNNER.     The  Social  Philosophy  of  Rodbertus. 
Laveleye.     Socialism  of  To-day.     Chs.  3-5. 
Macdonald.     The  Socialist  Movement. 
Menger.     The  Right  to  the  Whole  Produce  of  Labor. 

Chs.  &-10. 
Plechanofp.     Anarchism  and  Socialism.     Ch.  2. 

*  Rae.     Contemporary  Socialism.     Chs.  3-4. 

*  Skelton.     Socialism.     Chs.  5-7. 

*  SoMBART.     Socialism  and  the  Social  Movement. 

*  Spargo.     Socialism. 

The  Common  Sense  of  Socialism. 

Sidelights  on  Contemporary  Socialism. 

Capitalist  and  Laborer. 
Stoddart.     The  New  Socialism.     Ch.  16. 
Tugan-Baranowsky.     Modem  Socialism  in  its  His- 
torical Development. 


8o  ESSENTIALS  OF  SOCIAUSM 

Untermann.     Marxian  Economics. 

WooLSEY.     Communism  and  Socialism.  Pp.  160-181. 

(<i)    Criticism  by  Non-socialists. 

*  Bohm-Bawebk.     Karl  Marx   and  the   Close  of  his 

System. 

Capital  and  Interest. 

The  Positive  Theory  of  Capital. 
Graham.     Socialism,  New  and  Old.     Ch.  4. 
GuTOT.    Socialistic  Fallacies.    Book  3. 
Kaufmann.     Utopias,  etc.     Chs.  11-14. 

Socialism.     Book  2,  ch.  6. 

*  SiMKHOviTCH.     Marxism  versus  Socialism. 

*  Veblen.    The  Socialist  Economics  of  Karl  Marx  and 

his  Followers. 

(e)    History  of  Scientific  Socialism. 

Bernstein.  Ferdinand  Lassalle  as  a  Social  Reformer. 
Dawson.  German  Socialism  and  Ferdinand  Lassalle. 
Ely.  French  and  German  Socialism.  Chs,  9-12, 14. 
Kaufmann.     Utopias,  etc.     Chs.  11-14. 

*  KiRKUP.     History  of  Socialism.     Chs.  5-7. 
LiEBKNECHT.     Karl  Marx. 

*  Russell.     German  Social  Democracy. 

*  Spargo.     Karl  Marx  ;  His  Life  and  Work. 

The  Marx  he  Knew. 

(J)    The  Appeal  of  Socialism  to  All  Nations  and  to  AU 
Classes. 

Engels  and  Marx.    The  Commmiist  Manifesto.    Pp. 
41-i2. 

*  Hunter.     Socialists  at  Work.     Preface.     Ch.  10. 

*  Kautsky.     The  Class  Struggle.     Pp.  202-210. 
Laf argue.     Socialism  and  the  Intellectuals. 
SoMBART.    Socialism  and  the  Social  Movement.    Pp. 

175-223. 

*  Stoddart.    The  New  Sociahsm.    Ch.  15. 


DIFFERENT  KINDS  OF  SOCIALISTS  8 1 

(^)    The  Evolution  of  Society. 

1.  As  interpreted  by  socialists. 
Bax.     The  Religion  of  Socialism. 

*  Enqels.    Landmarks  of  Scientific  Socialism.    Preface 

by  A.  Lewis. 
P^RRi.     Socialism  and  Modem  Science.    Part  2. 

*  Katjtskt.     The  Class  Struggle.     Pp.  9-18. 
Lapargue.    The  Evolution  of  Property,  etc. 

*  Macdonald.     The  Socialist  Movement.     Chs.  1-2. 
Mills.    The  Struggle  for  Existence.     Chs.  1-11. 
Richardson.     Industrial  Problems.    Pp.  226-229. 
Vail.     Modem  Socialism.     Ch.  3. 

Principles  of  Scientific  Socialism.     Ch.  1. 

2.  As  interpreted  by  non-socialists. 

*  Beard.    The  Industrial  Revolution. 
BiJCHER.     Industrial  Evolution. 

*  Ely.  The  Evolution  of  Industrial  Society.  Chs.  1-5., 
HoBsoN.  Evolution  of  Modem  Capitalism.  Chs.  1-3. 
KiDD.     Social  Evolution. 

*  KiRKUP.    History  of  Socialism.     Ch.  12. 

Le  Rossignol.     Orthodox  Socialism.     Ch.  9. 
SoMBART.     Socialism  and  the  Social  Movement.    Pp. 
71-74. 

(h)    The    Economic  Interpretation  of  History  and  the 
Class  Struggle. 

1.  Statement  and  discussion  by  socialists. 

*  BouDiN.    The  Theoretical  System  of  Karl  Marx.    Chs. 

2-3. 
Bernstein.     Evolutionary  Socialism.  Pp.  6-28. 
Engels.     Feuerbach,  etc. 

*  Socialism,  Utopian  and  Scientific.     Chs.  2-3. 
Engels  and  Marx.    The  Communist  Manifesto.    In- 
troduction; Part  1. 

a 


82  ESSENTIALS  OF  SOCIAUSM 

*  Ghent.    Mass  and  Class.     Especially  chs.  1-2. 

Socialism  and  Success.     Ch.  5. 
HiLQUiT.     Socialism  in  Theory  and  Practice.    Part  1, 

ch.  6. 
Kaufmann.     What  is  Socialism  ?     Ch.  5. 

*  Kautsky.     Social  Revolution.     Pp.  37-65. 

Ethics  and  the  Materialist  Conception  of  History. 
Labriola.    Essays  on  the  Materialistic  Conception  of 

History. 
Lapargue.    Social  and  Philosophical  Studies. 
La  Monte.     Socialism,  Positive  and  Negative.     Pp. 

25-33,  46-56. 
London.     The  War  of  the  Classes.     Ch.  1. 
Macdonald.     The  Socialist   Movement.      r*p.    141- 

149. 
Marx.     Poverty  of  Philosophy.     Ch.  2,  sees.  1-3. 
Value,  Price,  and  Profit.     Ch.  14. 
A  Contribution  to  the  Critique  of  Political  Econ- 
omy. 
Mills.     The  Struggle  for  Existence.     Chs.  21,  33. 
Richardson.     Industrial  Problems.     Part  1,  ch.  11. 
Spargo.     The  Substance  of  Socialism.     Parts  1,  3. 

*  Socialism.     Chs.  4,  6. 

Socialists;   Who  They  Are,  etc.     Chs.  6-12. 
Untermann.     Science  and  Revolution. 
Vail.     Principles  of  Scientific  Socialism.    Ch.  13,  sec.  2. 

2.  Statement  and  discussion  by  non-socialists. 
BoNAR.     Philosophy    and    Political    Economy,    etc. 

Book  5,  chs.  1-2. 
Ely.     Evolution  of  Industrial  Society.     Part  1,  oh.  4. 
Guthrie.     Socialism  Before   the  French  Revolution. 

Pp.  31-33. 
GuYOT.     Socialistic  Fallacies.     Book  3,  ch.  8;  book  8. 

*  Le  Rossignol.    Orthodox  Socialism.    Chs.  7-8. 

*  Seligman.    The  Economic  Interpretation  of  History. 


DIFFERENT  KINDS   OF  SOCIALISTS  83 

*  Skelton.    Socialism.     Ch.  5. 

SoMBART.    Socialism  and  the  Social  Movement.    Pp. 
87-98. 

3.  Application  of  the  doctrine  to  economio  and  his- 

torical studies. 
Lewis.    The  Rise  of  the  American  Proletarian. 
LoRiA.    The  Economic  Foundations  of  Society. 

*  Simons.     Class  Struggles  in  America. 
Untermann.    The  Worid's  Revolutions. 

*  Veblen.    The  Theory  of  Business  Enterprise. 

4.  Other  methods  of  interpreting  history. 
Buckle.     History  of  CiviUzation  in  England. 
Patten.    The  Development  of  English  Thought. 
Robertson.    Buckle  and  his  Critics. 

(t)    The  Labor  Theory  of  Value. 

1.  Statement  and  discussion  by  socialists. 

Avelinq.     The  Students'  Marx.     Parts  1-2. 

*  Bernstein.     Evolutionary  Socialism.     Pp.  28-40. 

*  BouDiN.    The  Theoretical  System  of  Karl  Marx.  Chs. 

4-6. 
Fabian  Essays.     Pp.  9-15. 
Hyndman.     Economics  of  Socialism.     Chs.  2,  7. 
Marx.    Poverty  of  Philosophy.     Ch.  1. 

*  Value,  Price,  and  Profit.    Ch.  6. 

*  Capital.     Vols.  1,  2,  3. 

Contribution  to  the  Critique  of  Political  Economy. 
Chs.  1-2. 
Mills.    The  Struggle  for  Existence.    Ch.  25. 

*  Spargo.     Socialism.     Ch.  8. 
Untermann.     Marxian  Economics.    Ch.  14. 
Vail.    Modem  Socialism.     Ch.  5. 

Principles  of  Scientific  Socialism.    Ch.  2  ;  ch.  13, 
see.  1. 


S4  ESSENTIALS  OF  SOCIALISM 

2.  Statement  and  discussion  by  non-socialists. 

*  Bohm-Bawerk.    Karl   Marx   and   the   Close  of  his 

System. 
Kaufmann.     Socialism.     Book  1,  chs.  1-2. 

*  Le  Rossignol.     Orthodox  Socialism.     Chs.  2-3. 
Naquet.    Collectivism  and  Socialism.    Bookl;  book 

2,  ch.  1. 

*  Skelton.    Socialism.    Ch.  6. 

0)    'Fhe  Theory  of  Surplits  Value. 

1.  Statement  and  discussion  by  socialists. 
AvELiNG.     The  Students'  Marx.     Parts  3-5. 
BouDiN.  The  Theoretical  System  of  Karl  Marx.  Ch.  6. 
Hyndman.    The  Economics  of  Socialism.     Ch.  3. 

La  Monte.     Socialism,  Positive  and  Negative.    Pp. 
46-56. 

*  Marx.     Capital.    Vols.  1,  2,  3. 

*  Value,  Price,  and  Profit.     Chs.  7,  8,  11. 

*  Richardson.     Industrial  Problems.     Part  1,  chs.  1—4. 

*  Spargo.     Socialism.     Ch.  8. 
Untermann.     Marxian  Economics.     Ch.  15. 
Vail.     Principles  of  Scientific  Socialism.     Ch.  3. 

2.  Statement  and  discussion  by  non-socialists. 

*  Bohm-Bawerk.     Karl  Marx  and  the  Close  of  his  Sys- 

tem.    Pp.  21^6,  60-124. 
Dawson.     German  Socialism  and  Ferdinand  Lassalle. 

Ch.  4. 
Hobson.     The  Economics  of  Distribution.     Ch.  10. 
Le  Rossignol.     Orthodox  Socialism.     Ch.  4. 

*  Skelton.     Socialism.     Ch.  6. 

{k)   The  Socialist  Explanation  of  Crises. 
1.  Statement  and  discussion  by  socialists. 
Bebel.     Woman  Under  Socialism.    Pp.  235  ff. 

*  Bernstein.     Evolutionary  Socialism.     Pp.  73-94. 


DIFFERENT  KINDS  OF  SOCIALISTS  85 

Engels.    Socialism,  Utopian  and  Scientific.     Pp.  45  flf. 
Engels  and  Marx.     The  Communist  Manifesto.    Pp. 

21fiF. 
Gronlund.    The  Cooperative  Commonwealth.  Ch.  2. 

*  Hyndman.     Commercial  Crises  of  the  Nineteenth  Cen- 

tury. 
Economics  of  Socialism.     Ch.  5. 

*  Richardson.     Industrial  Problems.     Part  1,  ch.  8. 
Vail.    Modem  Socialism.     Ch.  11. 

Principles  of  Scientific  Socialism.     Ch.  11. 

2.  Discussion  by  non-socialists. 
Jones.     Economic  Crises.     Ch.  5. 

*  Le  R0S8IGNOL.     Orthodox  Socialism.    Ch.  6. 

*  Skelton.     Socialism.     Pp.  166-171. 

3.  Other  methods  of  explaining  crises. 

Burton.    Financial  Crises  and  Periods  of  Industrial 

and  Commercial  Depression. 
Caret.     Financial  Crises  ;   Their  Causes  and  Effects. 

*  Jones.     Economic  Crises. 

Pratt.     The  Work  of  Wall  street.     Ch.  20. 

4.  Excellent  bibliographies  on  this  subject  are  to  be 

found  in  Burton  and  also  in  Jones,  swpra. 

(Z)     The  Right  to  the  Full  Product  of  Labor. 
1.  Statement  and  criticism. 

Anonymous.     The  Case  Against  Socialism.    Pp.  298- 
306. 

*  Mbnger.     The  Right  to  the  Full  Produce  of  Labor. 

*  Skelton.     Socialism.    Pp.  200-207. 

(m)   The  Increasing  Concentration  of  Industry. 
1.  Statement  and  discussion  by  socialists. 


86  ESSENTIALS  OF  SOCIAUSM 

Blatchpord.     Britain  for  the  British.     Chs.  1-6. 

*  BouDiN.    The  Theoretical  System  of  Karl  Marx.  Chs. 

8-9. 
Fabian  Essays.     Pp.  56-93. 
Ghent.     Benevolent  Feudalism.    Chs.  2,  4. 
Qronlund.    The  Cooperative  Commonwealth.  Ch.  3. 

*  Kampffmeyer.     Tendency  of  Economic  Development. 

*  Marx.     Capital.     Vol.  1,  eh.  25. 

Meyers.     History  of  the  Great  American  Fortimes. 
Mills.    The  Struggle  for  Existence.     Ch.  34. 
Richardson.     Industrial  Problems.     Part  1,  ch.  5. 
Simons.     The  American  Farmer.     Book  2,  ch.  4. 

*  Spargo.     The  Substance  of  Socialism.     Pp.  85  ff. 

Socialism.     Ch.  5. 

*  Vandervelde.     Collectivism  and  Industrial  Evolution. 

Part  1. 

2.  Statement  by  non-socialists. 

Ely.    Evolution  of  Industrial  Society.    Part  2,  chs.  4-6. 

*  Monopolies  and  Trusts. 

HoBSON.     Evolution  of  Modem  Capitalism.     Chs.  4r-6. 
Jenks.     The  Trust  Problem. 

*  KiRKUP.     The  History  of  Socialism.     Ch.  14. 
Lloyd.     Wealth  against  Commonwealth. 
Macrosty.     The  Trust  Movement  in  Great  Britain. 

Trusts  and  the  State. 
Sombart.     Socialism  and  the  Social  Movement.     Pp. 

74-84. 
Spa9R.     An   Essay   on   the   Present  Distribution  of 

Wealth  in  the  United  States. 

*  Stoddart.     The  New  Socialism.     Ch.  1,  sec.  2. 
YouNGMAN.    The  Economic  Causes  of  Great  Fortunes. 

3.  Criticism. 

*  Bernstein.     Evolutionary  Socialism.     Pp.  40-73. 
GuTOT.    Socialistic  Fallacies.    Books  4-5. 


DIFFERENT  KINDS  OF  SOCIALISTS  8/ 

*  SiMKHoviTCH.    Marxism  versus  Socialism. 

*  Skelton.     Socialism.    Pp.  155-163. 

(n)  The  Theory  of  Increasing  Misery. 

1.  Statement  and  discussion  by  socialists. 

*  Benson.     Socialism  Made  Plain. 

Ghent.     Socialism  and  Success.     Chs.  1,  5. 

Benevolent  Feudalism.     Ch.  4. 
Hunter.    Poverty. 

*  Kautsky.     The  Class  Struggle.     Pp.  172-184. 
Marx.     The  Poverty  of  Philosophy.     Ch.  2,  seo.  5.  ' 

Capital.    Vol.  1,  chs.  10,  15,  32. 
Vail.     Modem  Socialism.     Ch.  12. 

Principles  of  Scientific  Socialism.    Chs.  6,  7;  Ch.  13, 
sec.  3. 

2.  Criticism. 

Adams  and  Sumner.     Labor  Problems.  Book  2,  ch.  13. 
Anonymous.     The  Case  Against  Socialism.    Pp.  268- 
292. 

*  Bernstein.     Evolutionary  Socialism.     Pp.  40-54. 
Ensor.     Modem  Socialism.     Ch.  13. 

GuYOT.     Socialistic  Fallacies.     Book  4. 

*  Herron.     The  Day  of  Judgment. 

*  Kampffmeyer.     Tendency  of  Economic  Development. 
Mallock.     The  Nation  as  a  Business  Firm. 

*  SiMKHOViTCH.     Marxism  versus  Socialism. 
Skelton.     Socialism.     Pp.  146-154. 

SoMBART.     Socialism  and  the  Social  Movement.    Pp. 
84r-86. 

*  Stoddart.    The  New  Socialism.     Ch.  1,  sec.  2;  ch.  2. 
(o)    The  Catastrophe  Theory. 

1.  Statement  and  discussion  by  socialists. 

*  BouDiN.    The  Theoretical  System  of  Karl  Marx.    Chs. 

9-10. 
Marx.     Capital.    Vol.  1,  ch.  32. 


88  ESSENTIALS  OF  SOCIAUSM 

2.  Criticism. 

GuYOT.    Socialistic  Fallacies.    Book  6. 

Herron.     The  Day  of  Judgment. 

Kampffmeyer.     Tendency  of  Economic  Development. 

*  Le  Rossignol.     Orthodox  Socialism.     Ch.  9. 

*  Skelton.     Socialism.     Pp.  171-176. 
Spargo.     Socialism.     Pp.  324-328. 

SoMBART.     Socialism  and  the  Social  Movement.    Pp. 
86-87. 

*  Stoddart.    The  New  Socialism.    Ch.  1,  sec.  1. 

(p)   Rent.  Interest.   Profits. 

1.  Position  of  the  socialists. 

*  Blatchford.     Merrie  England.     Ch.  7. 
Fabian  Essays.    Pp.  1-9. 

Hyndman.     The  Economics  of  Socialism.     Ch.  6. 

*  Kautsky.     The  Class  Struggle.     Pp.  52-55. 
Marx.     Capital.     Vols.  1,  2,  3. 

Poverty  of  Philosophy.     Ch.  2,  sec.  4. 

Value,  Price,  and  Profit. 
Mills.     The  Struggle  for  Existence.     Ch.  28. 
Untermann.     Marxian  Economics.     Chs.  17-18. 

*  Vail.     Modem  Socialism.     Ch.  6. 

Principles  of  Scientific  Socialism.     Ch.  8. 

2.  Criticism. 

Bohm-Bawerk.     The    Positive    Theory    of  Capital. 
Book  6,  ch.  10. 

*  Cassell.    The  Nature  and  Necessity  of  Interest. 

(q)    The  Early  English  Socialists. 

See  the  writings  of  Bray,  Godwin,  Gray,  Hall, 
Hodgskin,  and  Thompson.  An  excellent  bibliog- 
raphy, as  well  as  a  most  thorough  discussion  of  their 
doctrines,  is  found  in  Menger,  Right  to  the  Whole 
Produce  of  Labor.     See  also:- — 

*  Eltz  backer.    Anarchism.     Ch.  3. 


DIFFERENT  KINDS  OF  SOCIALISTS  89 

Marx.     The  Poverty  of  Philosophy.    Appendix  2. 
Paul.    William  Godwin  ;  His  Friends  and  Contempo- 
raries. 

(r)  Revisionism. 

*  Bernstein.     Evolutionary  Socialism. 
Ghent.     Socialism  and  Success.     Ch.  4. 
Herron.     The  Day  of  Judgment. 

*  Kampffmeyer.     Tendency  of  Economic  Development. 

*  Changes  in  the  Theory,  etc. 

*  Leebknecht.  No  Compromise,  No  Political  Trading. 
Macdonald.  The  Socialist  Movement.  P*p.  210-213. 
PoLiTicus.     The  New  Emancipation. 

*  Skelton.     Socialism.     Pp.  175  ff.,  250  ff. 
Spargo.    Sidelights  on  Contemporary  Socialism. 
Wells.    New  Worlds  for  Old. 

(s)  Syndicalism. 

P*racticaUy  all  of  the  literature  dealing  with  syn- 
dicalism has  been  written  in  a  foreign  language. 
See  especially  the  works  of  Kritsky,  Lagardelle, 
Leone,  Louis,  Mermeix,  Prezzolini,  and  Sorel.  See 
also :  — 

*  Skelton.     Socialism.     Pp.  267-282. 

Sombart.     Socialism  and  the  Social  Movement.    Pp. 
98-130. 

*  Stoddart.     The  New  Socialism.  Supplementary  chap- 

ter on  "  Revolutionary  Syndicalism." 

(t)    The  General  Strike. 

Ensor.     Modem  Socialism.     Ch.  14. 

Jaures.     Studies  in  Socialism.     Ch.  12. 

*  Skelton.     Socialism.     Pp.  277-279. 

*  Stoddart.     The  New  Socialism.     Pp.  199-217. 


CHAPTER  V 

THE  nnEVITABILITY   OF  SOCIALISM 

Scientific  socialists  claim  that  socialism  is  in- 
evitable and  that  it  will  surely  supplant  capitalism 
just  as  capitalism  supplanted  feudalism.  Among 
the  more  important  arguments  advanced  in  sup- 
port of  their  contention  are  the  following  :  (1)  the 
evolution  of  society ;  (2)  the  class  struggle; 
(3)  the  concentration  of  industry;  (4)  the  theory 
of  increasing  misery  ;  (5)  the  unemployed  prob- 
lem ;  and  (6)  the  economic  contradictions  of  capi- 
talism. Much  has  already  been  written  in  the 
preceding  pages  concerning  these  propositions,  yet 
a  discussion  of  the  inevitability  of  socialism  neces- 
sitates a  brief  restatement  in  this  connection. 

(1)  The  Evolution  of  Society. 

The  scientific  socialists  claim  that  inasmuch  as 
society  has  evolved  from  earlier  stages  into  capi- 
talism, and  inasmuch  as  it  must  continue  to  evolve, 
it  will  necessarily  develop  into  a  stage  of  socialism. 
This,  they  affirm,  is  true  because  the  character  or 
the  stage  of  society  is  shaped  or  determined  by 

9° 


THE  INEVITABILITY  OF  SOCIALISM  9 1 

the  dominant  mode  of  production  and  exchange  ; 
and,  as  under  capitalism  the  tools  of  industry  are 
privately  owned,  but  collectively  used,  the  next 
stage  must  be  one  in  which  they  will  be  collec- 
tively owned  as  well  as  collectively  used.  Such 
an  arrangement  would  be  possible  only  under 
socialism. 

In  opposition  to  this  position  the  critics  of  the 
socialist  theories  declare  that  the  evolution  of  so- 
ciety need  not  inevitably  result  in  socialism.  It 
is  impossible  to  prophesy  what  the  future  will 
bring  forth.  The  next  stage  may  possibly  be  one 
of  "  Benevolent  Feudalism,"  one  of  voluntary 
cooperation,  or  one  of  private  ownership  with  a 
very  intensified  form  of  collective  control  and 
operation. 

(2)  The  Class  Struggle. 

The  scientific  socialists  hold  that  all  history  is 
the  history  of  class  struggles,  the  character  of  the 
classes  being  determined  by  the  prevailing  eco- 
nomic conditions ;  that  throughout  all  history 
the  workers  have  struggled  up  from  slavery  to 
their  present  position  of  political  and  partial  eco- 
nomic freedom  ;  that  with  the  passage  of  years 
all  classes  save  two,  —  the  workers  and  the  capital- 
ists —  have  been  abolished  ;  and  that  at  the  present 


92  ESSENTIALS  OF  SOCIALISM 

time  the  contest  lies  between  these  two  classes. 
With  the  growing  class  consciousness  of  the 
workers  it  is  expected  that  there  will  come  a 
united  struggle  on  their  part  upon  the  political 
and  the  industrial  fields  against  the  capitalists, 
which  can  result  only  in  a  victory  for  the  former 
and  in  the  subsequent  introduction  of  socialism. 

The  opponents  of  this  idea  claim  that  the  social- 
ists exaggerate  the  importance  of  the  class  strug- 
gle in  the  past,  as  well  as  in  the  present;  that, 
although  the'  middle  class  of  yesterday  is  passing 
away,  its  place  is  being  taken  by  a  new  middle 
class  composed  of  well-paid  foremen,  superintend- 
ents, bookkeepers,  managers,  professional  men,  and 
the  like  ;  that  the  workers  and  the  capitalists  may 
and  do  have  common  economic,  political,  social, 
and  religious  interests ;  and  that,  although  their 
interests  may  not  be  the  same  when  it  comes  to 
a  division  of  the  products  of  industry,  still,  this 
one  fact  is  not  a  sufficient  reason  for  claiming 
that  all  history  is  the  history  of  class  struggles, 
or  that  the  final  outcome  of  such  a  clash  of  inter- 
ests must  inevitably  result  in  bringing  about  a 
regime  of  socialism.  It  is  also  argued  that  the 
socialist  movement  throughout  the  world  has  aban- 
doned the  class  struggle  doctrine  to  a  greater  or 
less  extent,  depending  upon  the  nation  consid- 


THE  INEVITABILITY  OF  SOCIALISM  93 

ered.i  In  addition  to  the  above,  certain  critics 
also  emphasize  the  fact  that  it  is  impossible  to 
bring  about  a  stage  of  society,  whether  it  be 
socialism,  capitalism,  feudalism,  or  what  not,  by 
merely  voting  for  it. 

(3)  The  Concentration  of  Industry. 

(4)  The  Theory  of  Increasing  Misery. 

(5)  The  Unemployed  Problem. 

These  three  propositions,  although  distinct  from 
each  other,  are  so  closely  related  that  they  can  be 
dealt  with  in  a  more  satisfactory  manner  by  con- 
sidering them  in  connection  with  each  other. 

The  scientific  socialists  hold  that  industry  is 
being  more  and  more  concentrated,  or  "trusti- 
fied " ;  that  its  control  is  becoming  increasingly 
centralized  in  the  hands  of  a  few  capitalists. 
This  tendency  is  seen  on  all  sides  and  in  all 
industries.  Along  with  this  growing  concentra- 
tion and  centralization  at  the  one  pole  comes  an 
"accumulation  of  misery,  agony  of  toil,  slavery, 
ignorance,  brutality,  mental  degradation  at  the 
opposite  pole."  ^  The  lot  of  the  workers  becomes 
increasingly  more  miserable. 

^  A.  M.  Simons,  one  of  the  most  prominent  of  American 
socialists,  has  declared  that  "The  socialist  movement  in  the 
United  States,  as  in  many  other  countries,  has  to  a  certain 
extent  got  away  from  the  class  struggle."  —  International 
Socialist  Review,  viii.,  p.  180.  *  Capital,  vol.  i.,  p.  709. 


94  ESSENTIALS  OF  SOCIALISM 

As  industry  expands,  the  capitalists  are  forced 
to  find  foreign  markets  in  which  to  sell  their  sur- 
plus products.  The  workers  who  have  produced 
these  surplus  commodities  are  unable  to  purchase 
them  because  they  have  received  only  a  small  por- 
tion of  their  product  as  wages.  The  search  for 
foreign  markets  by  the  capitalists  leads  to  a  scram- 
ble for  colonies,  to  a  drumming  up  of  trade  in  the 
Orient,  and  to  "benevolent  assimilation."  But 
capitalism  is  a  queer  thing.  "  The  bourgeoisie, 
by  the  rapid  improvement  of  all  instruments  of 
production,  by  the  immensely  facilitated  means  of 
communication,  draw  all,  even  the  most  barba- 
rian, nations  into  civilization.  ...  It  compels 
all  nations,  on  pain  of  extinction,  to  adopt  the 
bourgeois  mode  of  production ;  it  compels  them 
to  introduce  what  it  calls  civilization  into  their 
midst,  i.e.  to  become  bourgeois  themselves.  In 
a  word,  it  creates  a  world  after  its  own  image."  ^ 
Thus  other  nations,  which  have  been  the  con- 
sumers of  the  surplus  products  of  capitalistic 
countries,  become  capitalistic  themselves;  they 
adopt  modern  methods  of  production  and  close 
their  ports  to  foreign  merchants  and  manufac- 
turers. Later  they,  too,  become  producers  of  sur- 
plus products  and  go  in  search  of  foreign  markets. 
•  Communist  Manifesto,  pp.  1&-19. 


THE  INEVITABILITY  OF  SOCIALISM  95 

The  scientific  socialists  declare  that  the  periods  of 
over-production  will  then  come  more  and  more 
frequently,  panics  will  become  the  normal  state 
of  industry,  an  enormous  unsolvable  unemployed 
problem  will  arise,  the  workers  will  sink  lower 
and  lower  in  the  scale  of  humanity,  their  condi- 
tion will  become  increasingly  worse,  until,  driven 
into  class  conscious  action,  they  will  vote  for 
socialism  and  thus  force  society  to  adopt  the 
collective  ownership  and  operation  of  industry.* 
In  meeting  these  arguments  dealing  with  the 
inevitability  of  socialism,  the  critics  show  that 
capital  does  not  concentrate  in  the  manner,  and 
certainly  not  as  rapidly  as,  Marx  predicted;  that 
the  lot  of  the  worker  is  becoming  more  satisfac- 
tory, and  that  crises  are  not  caused  solely  by  the 
over-production  of  commodities.  They  also  claim 
that  organized  production  (the  trusts)  tends  to  do 
away  with  the  problem  of  over-production  (hence 
also  with  panics  and  the  unemployed  problem) 
through  the  adjustment  of  supply  to  demand.  At 
the  same  time  it  also  brings  into  existence  new 
trades  and  businesses  by  cheapening  materials  and 
liberating  capital,  by  setting  free  a  portion  of  the 

*  For  a  more  detailed  discussion  of  the  arguments  offered 
against  these  contentions  than  is  presented  in  this  chapter,  see 
Chapter  V. 


96  ESSENTIALS  OF  SOCIALISM 

labor  supply  which  can  be  utilized  in  these  new 
lines  of  industry,  and  by  increasing  the  demand 
for  new  kinds  of  commodities.  Laborers,  who  are 
displaced  by  the  introduction  of  new  processes  or 
as  the  result  of  combination,  are  absorbed  either 
partly  or  wholly  by  the  new  industries  resulting 
therefrom  or  by  the  expansion  of  other  industries. 
But  even  granting  that  industry  were  becoming 
more  concentrated,  it  would  still  devolve  upon  the 
socialists  to  show  that  socialism  would  inevitably 
result.  The  outcome  might  possibly  prove  to  be 
the  further  strengthening  of  capitalism  or  the 
birth  of  some  stage  other  than  that  of  socialism. 

It  is  also  shown  that  with  the  greater  bargain- 
ing power  of  the  workers,  obtained  by  means  of 
their  associations,  political  and  industrial,  they 
will  be  increasingly  able  to  demand  and  obtain 
higher  wages.  This  will  enable  them  to  purchase 
more  of  their  products,  thus  preventing  the  rapid 
accumulation  of  surplus  values,  and  assisting  in 
the  elimination  of  crises  and  the  unemployed 
problem. 

(6)  Economic  Contradictions  of  Capitalism. 

Scientific  socialists  insist  that  capitalism  con- 
tains within  itself  certain  fundamental  contradic- 
tions, in  relality  the  germs  of  its  own  destruction. 


THE  INEVITABILITY  OF  SOCIALISM  97 

These  are  to  be  found  in  certain  phenomena,  some 
of  which  have  already  been  described. 

(a)  The  first  economic  contradiction  in  capital- 
ism is  found  in  the  collective  use  and  the  private 
ownership  of  the  means  of  production  and  ex- 
change. This  contradiction,  they  claim,  can  be 
abolished  only  by  socialism,  under  which  collective 
ownership,  as  well  as  collective  operation,  would 
prevail. 

(6)  The  second  contradiction,  according  to  the 
socialists,  is  that  capitalists,  in  order  to  market 
their  goods  and  thus  turn  surplus  products  into 
cash,  are  forced  to  lower  the  prices  of  their  com- 
modities. This  makes  possible,  and  also  results 
in,  a  reduction  of  wages  and  a  consequent  diminu- 
tion of  the  purchasing  power  of  the  workers,  thus 
indirectly  defeating  the  objects  of  the  capitalists. 
Lowered  prices  cause  lowered  wages;  lowered 
wages  mean  a  reduced  purchasing  power  on  the 
part  of  the  workers ;  the  employer  sells  less,  and 
consequently  reaps  smaller  profits.  This  in  its 
turn  brings  about  the  rapid  accumulation  of  sur- 
plus values;  panics  occur  more  and  more  fre- 
quently ;  at  the  same  time  the  trustification  of 
industry  progresses ;  misery  increases  ;  and  in  the 
end  the  workers  find  refuge  in  the  inauguration 
of  the  socialist  state.     Thus  it  is  that  they  declare 


98  ESSENTIALS  OF  SOCIALISM 

that  capitalism  brings  about  its  own  destruc- 
tion. 

(c)  The  third  contradiction  is  that  improved 
processes  demand  a  greater  accumulation  of  capital 
and  its  investment  in  constantly  increasing  sums 
in  industrial  enterprises.  Improvements  also  lower 
the  value  of  capital  invested  in  existing  processes. 
This  with  the  falling  rate  of  profit  accelerates 
the  concentration  of  industry.  "  One  capitalist 
devours  another,"  their  numbers  decrease,  and  the 
capitalist  class  at  last  ceases  to  function  as  a  class, 
because  a  social  class  always  presupposes  a  certain 
minimum  of  numbers.  With  a  few  capitalists  on 
the  one  hand  owning  all  industry,  and  a  thor- 
oughly organized  class-conscious  propertyless  prol- 
etariat composed  of  millions  of  laborers  on  the 
other,  the  struggle  for  supremacy  under  such  un- 
equal circumstances  cannot  be  other  than  of  short 
duration,  and  must,  so  the  scientific  socialists  say, 
result  in  the  overthrow  of  capitalism  and  in  the 
introduction  of  socialism. 

Conclusion.  (1)  The  impossibility  of  an  indefi- 
nite continuance  of  production  under  capitalism 
must  be  proven  by  the  socialists. 

(2)  If  the  validity  of  their  destructive  arguments 
is  admitted,  it  still  remains  for  the  socialists  to  show 
beyond  a  doubt  that  society  must  inevitably  evolve 
into  socialism. 


THE  INEVITABILITY  OF  SOCIALISM  99 

(3)  If  there  are  conditions  in  the  present  indus- 
trial system  which  seem  to  make  for  the  coming  of 
socialism,  it  does  not  necessarily  follow  that  they 
are  inherent  in  that  system.  They  may  merely  be 
temporarily  connected  with  it  and  may  be  elimi- 
nated with  its  further  development. 

REFERENCES 

1.  General  References. 

Barker.     British  Socialism.     Chs.  35-36. 
Benson.     Socialism  Made  Plain.     Ch.  15. 

*  BouDiN.     The  Theoretical  System  of  Karl  Marx.     Pp. 

147-169. 
Ely.     Socialism  and  Social  Reform.     Part  I,  ch.  8. 

*  Ghent.     Socialism  and  Success.     Ch.  6. 

Our  Benevolent  Feudalism.     Chs.  8-9. 
Graham.     Socialism,  New  and  Old.     Ch.  13. 
Gronlund.    The  Cooperative  Commonwealth.  Chs.  3, 

13. 
GuTHREE.    Socialism  Before   the  French  Revolution. 

Ch.  9. 
HoBsoN.     Evolution  of  Modem  Capitalism.     Ch.  14. 

*  Jaures.     Studies  in  Socialism.     Ch.  13. 
Mills.     The  Struggle  for  Existence.     Ch.  22. 

*  Untermann.     Marxian  Economics.     Ch.  19. 
Woolsey.     Communism  and  Socialism.     Ch.  8. 

2.  The  Evolution  of  Society. 

See  references,  p.  81. 

3.  The  Economic  Interpretation  of  History  and  the  Class 

Struggle. 

See  references,  pp.  81-83. 


lOO  ESSENTIALS   OF  SOCIALISM 

4.  The  Concentration  of  Industry. 

See  references,  pp.  85-87. 

5.  The  Theory  of  Increasing  Misery. 

See  references,  p.  87. 

6.  The  Unemployed  Problem. 

*  Beveridge.     Unemployment. 

H0B8ON.    The  Problem  of  the  Unemployed. 

*  Kautsky.     The  Class  Struggle.     Pp.  29-35. 

*  Richardson.     Industrial  Problems.     Part  1,  ch.  7. 
Skelton.     Socialism.     Pp.  33  ff.,  140  ff. 
Taylor.     A  Bibliography  of  Unemplojmient. 

7.  The  Economic  Contradictions  of  Capitalism. 

There  are  very  few  references  which  deal  directly 
with  this  point.  See  especially  Boudin,  The 
Theoretical  System  of  Karl  Marx,  pp.  147-169. 


CHAPTER  VI 

METHODS  OF   OBTAINING  COLLECTIVE 
OWNERSHIP 

The  scientific  socialists  are  continually  ques- 
tioned regarding  the  methods  by  which  they  pro- 
pose that  the  collectivity  shall  obtain  possession 
of  the  industries  of  the  nation.  Will  the  change 
from  private  to  collective  ownership  be  made 
gradually,  one  industry  at  a  time,  or  will  it  be 
made  at  a  single  stroke  ?  In  either  case,  how  will 
it  be  done  ? 

In  answering  these  questions  the  scientific 
socialists  of  to-day  are  practically  unanimous  in 
declaring  that  the  change  from  capitalism  to 
socialism  must  come  as  the  result  of  evolution 
rather  than  revolution.  First  of  all  there  must 
be  a  victory  of  the  socialist  party  at  the  polls. 
The  socialist  officials  would  then  prepare  the  way 
for  the  acquisition  for  some  one  important  trusti- 
fied industry  by  passing  certain  necessary  laws, 
by  amending  the  constitution,  and  by  appointing 
sympathetic  federal  judges.      If  conditions  were 

lOI 

LIBRARY 
UNIVERSITY  OF  CALIFORNIA 


I02  ESSENTIALS  OF  SOCIALISM 

then  satisfactory  for  socialization  to  take  place, 
the  industry  -tvoiild  be  taken  over  by  the  socialist 
go.vejnmejit.  Some  opponents  of  socialism  argue 
that  force"  vv'oatd 'be -necessary  because  the  capital- 
ists would  refuse  to  part  with  their  ownership  of 
industry.  The  socialists  in  reply  maintain  that 
there  could  be  no  civil  war  over  the  matter  of  the 
socialization  of  industry  because  by  the  time  that 
it  was  to  take  place  the  soldiers  of  the  nation 
would  have  been  won  over  to  a  belief  in  the  prin- 
ciples of  socialism  and  would  refuse  to  take  sides 
with  the  capitalists. 

The  scientific  socialists  state  that  they  do  not 
know  what  method  or  methods  would  be  followed 
in  securing  the  collective  ownership  of  industry, 
but  suggest  that  any  of  the  following  might  prove 
to  be  satisfactory  :  — 

(1)  Voluntary  bestowal.  It  is  thought  that 
perhaps  many  capitalists  might  be  induced  vol- 
untarily to  turn  over  their  industries  to  the 
collectivity. 

(2)  Purchase.  The  collectivity  might  purchase 
those  industries  which  it  was  deemed  necessary  and 
advisable  to  socialize. 

(3)  Pension.  It  is  suggested  that  the  collec- 
tivity might  take  over  the  industries  needed  and 
give  their  present  owners  a  life  pension. 


OBTAINING   COLLECTIVE   OWNERSHIP        103 

(4)  Competition.  It  is  proposed  by  some  that 
the  collectivity  might  engage  in  industry  and  com- 
pete with  the  capitalists,  gradually  forcing  them 
from  the  field  and  abolishing  private  ownership. 

(5)  Confiscation.  The  collectivity  might  con- 
fiscate all  means  of  exploitation  and  appropriate 
them  for  its  use.  It  is  contended  by  the  scientific 
socialists  that  the  capitalists  have  obtained  their 
wealth  in  the  first  instance  by  having  appropri- 
ated it  from  the  workers  in  a  number  of  different 
ways,  but  primarily  through  the  payment  of  rent, 
interest,  and  profits,  and  that  its  confiscation  by 
society  would  merely  be  taking  back  that  which 
was  originally  taken  from  the  workers. 

The  impracticability  of  the  first  method,  vol- 
untary bestowal  by  the  capitalists,  is  self-evident. 
Payment  or  purchase  would  involve  the  issuance 
of  bonds  and  would  burden  the  nation  with  a  debt 
the  proportions  of  which  would  be  beyond  compre- 
hension. It  would  also  probably  compel  the  pay- 
ment of  interest  to  the  bondholders,  to  which  policy 
the  socialists  must  logically  object.  Some  have 
suggested  that  the  imposition  of  income,  inherit- 
ance, and  property  taxes  would  prove  to  be  of 
great  service  in  reducing  the  obligations  of  the 
state  in  case  the  industries  were  purchased  by 
the  collectivity.     Pensions,  as  would  also  be  the 


I04  ESSENTIALS  OF  SOCIALISM 

case  with  interest  on  bonds,  would  have  to  be 
taken  from  the  product  of  the  workers,  thus  mak- 
ing impossible  the  realization  of  the  socialist  ideal 
of  "To  the  laborer  his  full  product."  These  two 
methods  would  also  introduce  the  question  of 
inheritance,  i.e.  whether  or  not  the  bonds  and 
pensions  would  be  passed  on  to  the  heirs  of  their 
recipients  in  the  first  instance.  The  establishment 
of  competing  enterprises  would  cause  a  great  waste 
of  capital  and  would  ultimately,  though  indirectly, 
result  in  the  confiscation  of  the  industrial  property 
of  those  capitalists  against  whom  competition  was 
waged.  Confiscation  is  objected  to  on  the  grounds 
of  justice  and  because  of  the  determined  resistance 
with  which  it  would  be  met.  Vandervelde,  the 
leading  Belgian  socialist,  has  said,  "  There  is  no 
doubt  that  of  all  forms  of  social  liquidation,  ex- 
propriation without  indemnity,  with  the  resistance, 
the  troubles,  the  bloody  disturbances  which  it 
would  not  fail  to  produce,  would  be  in  the  end 
the  most  costly."  ^ 

REFERENCES 

Jaures.    Studies  in  Socialism.    Ch.  13. 
♦  Kelly.     Twentieth  Century  Socialism.     Book  3,  eh.  2. 
Macdonald.    The  Socialist  Movement.     Ch.  8. 

1  CoUtctinitm  and  Industrial  Evolution,  p.  166. 


OBTAINING   COLLECTIVE    OWNERSHIP        105 

*  Richardson.     Methods  of  Acquiring  Possession  of  our 

National  Industries. 
Skelton.     Socialism.    Pp.  182-184. 

*  Spargo.     Socialism.     Ch.  10. 
Stoddart.     The  New  Socialism.     Chs.  3-4. 
Tugan-Baranowsky.    Modem  Socialism,  etc.  Chs.  7-8. 

*  Vandervelde.     Collectivism   and  Industrial  Evolution. 

Part  2,  ch.  5. 


CHAPTER  VII 

OUTLINES   OF   A   POSSIBLE   SOCIALIST  STATE 

Although  the  Utopian  socialists  outline  with 
the  greatest  detail  the  plan  or  scheme  of  their  ideal 
state,  the  scientific  socialists  almost  consistently 
refuse  to  construct  even  a  tentative  scheme  of 
things  which  they  expect  to  exist  under  socialism. 
To  a  certain  extent  they  are  justified  in  so  doing 
because  it  is  impossible  to  prophesy  with  any  de- 
gree of  accuracy  what  the  future  will  bring  forth 
even  under  capitalism.  On  the  other  hand,  how- 
ever, it  must  be  admitted  that  it  is  no  more  than 
just  to  everybody  concerned  that  something  be 
known  regarding  what  institutions  the  socialists 
propose  to  substitute  for  those  of  our  present  social 
order.  Several  attempts  have  been  made  by  prom- 
inent socialists,  as  well  as  by  some  non-socialists, 
to  formulate  in  an  indefinite  sort  of  way  the  scheme 
of  things  which  might  possibly  exist  under  social- 
ism, and  while  they  do  not  bear  the  stamp  of 
approval  of  the  socialist  organizations,  they  afford 
"  something  more  tangible  by  way  of  a  description 
of  the  future  state  than  the  bald  statement  that  it 

io6 


OUTLINES  OF  A  POSSIBLE  SOCIALIST  STATE      107 

will  be  free  from  the  struggle  between  exploiting 
and  exploited  classes."  ^  The  following  briefly 
stated  outline  is  a  general  summary  of  a  number 
of  the  schemes  which  have  been  suggested. 

Politically  the  cooperative  commonwealth  would 
be  as  ideally  democratic  as  it  would  be  possible  to 
make  it.  The  representative  form  of  government 
with  its  courts,  legislatures,  and  executives  might 
still  exist,  but  the  power  of  final  decision  would 
lie  entirely  with  the  voters,  the  right  to  vote  being 
shared  equally  by  men  and  women,  excluding,  of 
course,  aliens,  criminals,  lunatics,  and  minors. 
The  initiative,  the  referendum,  and  the  recall 
would  make  the  "political  machinery  responsive 
to  the  popular  will,"  while  the  adoption  of  propor- 
tional representation  would  enable  the  minority 
to  have  its  opinions  voiced  upon  all  public  ques- 
tions. 

Regarding  "  the  economic  structure  of  the  new 
society,"  John  Spargo,  one  of  the  leading  socialists 
in  the  United  States,  declares  that  it  "  will  at  least 
include  the  following  measures  of  socialization  : 
(1)  Ownership  of  all  natural  resources,  such  as 
land,  mines,  forests,  waterways,  oil  wells,  and  so 
on ;  (2)  operation  of  all  means  of  transportation 
and  communication  other  than  those  of  purely 
1  Spargo,  Socialism,  p.  278. 


I08  ESSENTIALS  OF  SOCIALISM 

personal  service ;  (3)  operation  of  all  industrial 
production  involving  large  compound  capitals  and 
associated  labor,  except  where  carried  on  by  vol- 
untary, democratic  cooperation,  with  the  necessary 
regulation  by  the  state ;  (4)  organization  of  all 
labor  essential  to  the  public  service,  such  as  the 
building  of  schools,  hospitals,  docks,  roads,  bridges, 
sewers,  and  the  like ;  the  construction  of  all  the 
machinery  and  plant  requisite  to  the  social  pro- 
duction and  distribution,  and  of  things  necessary 
for  the  maintenance  of  those  engaged  in  such  pub- 
lic services  as  the  national  defence  and  all  who  are 
wards  of  the  state ;  (5)  a  monopoly  of  the  mone- 
tary and  credit  functions,  including  coinage,  bank- 
ing, mortgaging,  and  the  extension  of  credit  to 
private  enterprise."  ^  There  might  possibly  remain 
a  considerable  amount  of  private  production  and 
exchange,  especially  in  connection  with  the  produc- 
tion and  sale  of  articles  of  luxury  and  of  commodi- 
ties not  in  general  demand.  Small  garden  plots 
and  small  farms  under  the  control  of  the  individual 
might  also  survive,  so  long  as  no  one  were  exploited 
as  a  result  thereof.  The  goal  of  the  socialists  is 
the  abolition  of  the  exploitation  of  the  workers, 
and  nothing  which  would  prevent  the  realization 
of  this  ideal  could  be  permitted  under  socialism. 
*  Socialism,  p.  300. 


OUTLINES  OF  A  POSSIBLE  SOCIALIST  STATE      IO9 

The  question  of  the  organization  and  manage- 
ment of  socialized  industry  is  without  doubt  the 
most  difficult  of  solution.  How  are  the  industries 
to  be  managed  under  socialism?  To  carry  out 
the  ideals  of  the  socialists  everything  must  be 
done  in  accordance  with  democratic  principles, 
otherwise  socialism  would  not  differ  materially 
from  government  ownership.  Great  bureaus  or 
boards  of  experts  chosen  by  civil  service  methods, 
having  charge  of  the  management  of  the  social- 
ized industries,  would  most  certainly  not  be  in 
harmony  with  democratic  principles.  Such  a 
scheme  of  things  could  not  be  called  an  "  indus- 
trial democracy."  The  workers  employed  in  any 
socialized  industry  must  have  a  voice  in  its  man- 
agement. This,  it  is  claimed,  could  be  obtained 
through  the  use  of  the  initiative,  the  referendum, 
and  the  recall.  The  workers  would  thus  be  able 
to  choose  their  superintendents,  fix  their  hours, 
wages,  and  conditions  of  employment.  Precau- 
tions would  have  to  be  taken,  however,  to  safe- 
guard the  interests  of  employees  in  other  industries 
and  of  the  public  in  general ;  otherwise,  what  would 
prevent  unheard  of  abuses  and  oppressive  condi- 
tions from  arising?  Industry  would  be  so  or- 
ganized as  to  eliminate  the  wastes  which  to-day 
characterize  competitive  production  and  exchange. 


no  ESSENTIALS  OF  SOCIALISM 

The  middlemen,  speculators,  advertisers,  traders, 
and  many  others,  so  necessary  to  the  capitalistic 
system,  would  disappear. 

Under  socialism  the  individual  would  have 
practically  the  same  rights  and  privileges  that 
he  possesses  at  the  present  day,  with  but  one 
notable  exception,  —  he  would  not  be  permitted 
to  engage  in  any  business  which  would  enable 
him  to  exploit  those  who  worked  for  him.  He 
would,  however,  have  the  right  to  do  anything 
that  did  not  interfere  with  the  welfare  of  society. 
As  under  socialism,  all  exploitation  would  cease, 
no  able-bodied  male  citizen  would  live  off  of  the 
results  of  another's  labor  except  in  payment  for 
having  performed  some  sort  of  service  for  that 
individual  or  for  society  at  large.  Teachers, 
artists,  musicians,  actors,  preachers,  etc.,  would 
be  supported,  as  at  present,  by  those  whom  they 
served.  No  person  would  be  unemployed  ;  work 
would  exist  for  all.  Even  though  labor  might 
be  made  compulsory,  there  is  no  occasion  for  the 
belief  on  the  part  of  some  of  the  critics  of  so- 
cialism that  jobs  would  be  assigned  to  each 
individual  by  the  authorities.  Men  would  choose 
their  professions  as  they  do  to-day.  Overcrowd- 
ing in  one  line  might  be  remedied  by  a  lowering 
of  wages  owing  to  the  working   of   the  law   of 


OUTLINES  OF  A  POSSIBLE  SOCIALIST  STA  TE      III 

supply  and  demand,  although  a  minimum  wage 
law  might  be  adopted  so  as  to  prevent  wages 
from  falling  too  low  in  any  one  craft. 

Inasmuch  as  under  the  proposed  ideal  conditions 
of  a  cooperative  commonwealth  rent,  interest,  and 
profits  would  not  be  paid  out  of  the  worker's  product, 
it  is  urged  by  the  socialists  that  the  laborers  would 
receive  a  higher  wage  and  consequently  would  be 
able  to  maintain  a  higher  standard  of  living  than 
is  possible  at  the  present  time.  This  would  make 
for  education,  for  recreation,  for  better  lives,  for 
better  homes,  and  for  better  conditions  in  general. 
There  is  no  basis  for  the  statement  that  socialism 
would  destroy  either  the  home  or  religion.  In- 
dividuals would  not  be  forced  to  live  in  barracks ; 
to  dress,  think,  and  act  alike ;  or  to  belong  to 
the  same  religious  sect. 

Such,  in  brief,  is  a  resume  of  what  might  possibly 
occur  under  socialism.  Even  though  one  puts  aside 
all  mention  of  those  difiBculties  which  would  have 
to  be  overcome  in  obtaining  possession  of  the 
means  of  production  and  exchange  and  in  organ- 
izing them  upon  a  socialistic  or  collective  basis, 
tasks  which  in  themselves  are  so  difficult  and  of 
such  stupendous  proportions  as  to  stagger  one's 
imaginative  powers  when  once  fully  appreciated, 
there  still  remain  many   very   serious   objections 


112  ESSENTIALS  OF  SOCIALISM 

which,  in  all  fairness,  can  be  urged  against  any- 
proposed  scheme  of  socialism. 

One  of  the  more  important  arguments  against 
an  "  industrial  democracy  "  is  the  claim  that  the 
workers  could  not  satisfactorily  conduct  the 
socialized  industries  of  the  nation  by  means  of  the 
democratic  measures  which  have  been  outlined 
above.  The  validity  of  this  objection  is  partially 
sustained  by  the  evidence  of  the  lack  of  interest 
taken  in  the  management  of  cooperative  and  simi- 
lar enterprises  by  cooperators,  and  by  the  custom- 
ary failure  of  all  ventures  in  which  too  many  cooks 
have  spoiled  the  broth.  Two  other  matters  which 
must  be  taken  into  consideration  are  the  ceaseless 
activities  of  the  self-seeking  individual,  always 
eager  for  "  a  soft  berth  "  and  a  prominent  position, 
and  the  possibilities  of  graft  and  corruption.  The 
workers  are  eager  for  a  higher  standard  of  living, 
but  are  they  desirous  of  undertaking  the  respon- 
sibility of  managing  the  industries  of  the  nation, 
to  say  nothing  of  the  question  which  can  be  raised 
regarding  their  ability  to  do  so  ? 

Another  matter  upon  which  some  opponents  of 
socialism  lay  considerable  stress  is  the  impossi- 
bility of  carrying  on  agriculture  under  a  regime 
of  collectivism.  The  difficulties  of  farming  the 
vast  areas  of  land  necessary  to  supply  the  people 


OUTLINES  OF  A  POSSIBLE  SOCIALIST  STATE      II3 

with  foodstuffs  and  the  task  of  marketing  the 
farming  products  appear  unsurmountable  to  a  large 
number  of  people.  Thus  far,  the  socialists  have 
done  comparatively  little  constructive  thinking  in 
this  connection  and  cannot  be  said  to  have  pro- 
posed any  generally  accepted  policy  other  than 
that  which  is  contained  in  the  phrase  "  the  collec- 
tive ownership  of  land." 

The  problem  of  how  to  devise  and  introduce  a 
just  system  of  remunerating  the  workers  in  a 
socialist  state  is  another  question  which  should 
be  squarely  and  fairly  met  by  the  advocates  of  so- 
cialism, but  as  yet  their  party  platforms  and  official 
declarations  are  strangely  silent  regarding  it.  The 
slogan  of  "  Give  to  labor  its  full  product "  is  an 
excellent  bit  of  propaganda,  but  it  cannot  be 
worked  out  satisfactorily  in  actual  industry,  for 
how  is  it  possible  to  calculate  the  full  product  of 
brakemen,  bookkeepers,  superintendents,  and  a 
thousand  and  one  other  kinds  of  employees  !  The 
plan  of  an  equality  of  wages  does  not  appeal  to 
a  majority  of  scientific  socialists  and  is  seldom 
mentioned  in  these  later  days,  although  it  was  the 
method  most  commonly  proposed  by  the  earlier 
Utopian  socialists.  To  pay  a  worker  in  accordance 
with  his  needs  is  a  proposition  too  indefinite  to 
warrant  serious  comment.     Some  have  proposed 


114  ESSENTIALS  OF  SOCIALISM 

that  wages  be  fixed  by  the  amount  of  socially 
necessary  labor  time  put  in  by  the  worker,  but  in 
this  connection  one  meets  with  the  problem  of  how 
to  reduce  skilled  labor  time  to  terms  of  unskilled 
labor  time.  It  has  been  suggested  that  wages  be 
determined  by  the  law  of  supply  and  demand,  but 
this  scheme  would  prove  to  be  contradictory  to  the 
ideals  of  the  socialists  inasmuch  as  it  would  pre- 
vent the  payment  of  the  full  product. 

Would  wages  be  paid  in  money  or  in  time 
checks?  The  latter  would  be  more  in  harmony 
with  the  theories  of  the  socialists,  for  it  would 
somewhat  facilitate  payment  on  the  basis  of  the 
number  of  hours  of  socially  necessary  labor  ex- 
pended. In  spite  of  this,  however,  it  is  seriously 
objected  to  by  many  socialists,  who  propose  instead 
that  wages  be  paid  in  money.  Valid  arguments 
can  be  raised  against  both  propositions. 

What  would  be  the  effect  upon  the  individual 
and  upon  society  of  having  every  person  assured 
of  employment,  for  such  is  the  goal  of  the  social- 
ists ?  To-day  the  fear  of  unemployment  forces  the 
worker  to  put  forth  his  best  efforts  so  as  to  retain 
his  job.  Wherein  would  lie  the  incentive  under 
socialism?  Would  not  the  same  sort  of  inertia, 
which  is  to  be  noted  to-day  among  governmental 
employees,  be  present   even  to  a  greater   extent 


OUTLINES  OF  A  POSSIBLE  SOCIALIST  STA  TE      1 1 5 

among  all  the  employees  of  the  collective  state  ? 
Socialists  argue  that  there  need  be  no  fear  on  this 
score  because  the  workers  would  realize  that  they 
were  laboring  for  themselves  and  would  therefore 
put  forth  their  best  efforts.  On  the  other  hand,  it 
must  be  remembered  that  many  cooperative  enter- 
prises have  failed  for  this  very  reason,  even  though 
the  cooperators  realized  that  they  were  their  own 
employers  and  that  the  returns  of  their  company 
would  be  greater  the  harder  they  worked. 

The  question  also  arises  whether  or  not  there 
would  be  danger  of  over-population  in  a  socialist 
state  through  the  working  of  the  Malthusian  law 
of  population.  Population,  being  held  back  only 
by  "the  actual  pressure  of  famine  and  disease 
(arising  from  an  insufficient  food  supply),  or  by 
the  prudential  motives  which  restrain  men  from 
undertaking  the  responsibility  of  marrying  and 
raising  families  upon  incomes  insufficient  to  pro- 
vide the  necessities  of  life,"  would  it  not  increase 
by  leaps  and  bounds  under  socialism  through  the 
consequent  removal  of  these  restraints?  The 
scientific  socialists,  however,  declare  that  a  rise  in 
the  standard  of  living  does  not  make  for  an  in- 
creased population,  and  offer  as  proof  of  their 
statement  the  fact  that  it  is  usually  the  very  poor, 
the  people  who  have  the  lowest  wages  and  the 


Il6  ESSENTIALS   OF  SOCIALISM 

lowest  standard  of  living,  that  have  the  largest 
families. 

Some  critics  of  the  socialist  doctrines  maintain 
that  socialism  would  have  to  come  simultaneously 
in  all  countries,  a  thing  which  would  be  impossible; 
otherwise,  that  nation  which  first  became  socialized 
would  experience  unheard-of  difficulties  in  its  re- 
lations with  other  nations  which  had  remained 
capitalistic.  These  difficulties,  for  the  most  part, 
would  arise  in  connection  with  the  question  of 
immigration  and  as  a  result  of  the  change  in  the 
standards  of  value  and  of  money. 

These  objections  are  but  a  few  of  those  most 
frequently  urged  against  conditions  which  might 
prevail  in  the  prophesied  stage  of  socialism. 
They  are  sufficient  to  show  that  many  grave  ques- 
tions remain  unanswered  by  those  who  advocate 
the  introduction  of  a  collective  state  of  society. 

REFERENCES 

X.  General  References  to  a  Discussion  of  Various  Phases 
of  a  Possible  Socialist  State. 

(a)  Socialist  Authors. 

Blatchford.    Merrie  England.     Ch.  23. 

De  Leon.    Marx  versus  Mallock. 

Fabian  Essays.     Pp.  120-157. 

Ghent.    Socialism  and  Success.    Pp.  210  ff.,  247  ff. 


OUTLINES  OF  A  POSSIBLE  SOCIALIST  STATE      11/ 

*  Gronlttnd.     The  Cooperative  Commonwealth. 
HiLQuiT.     Socialism  in  Theory  and  Practice.    Part  1, 

ch.  5. 
Mr.  Mallock's  "  Ability." 
Kauffman.    What  is  Socialism  ?    Ch.  8. 

*  Kautskt.     The  Class  Struggle.     Pp.  88-159. 

*  Kelly.     Twentieth  Century  Socialism.     Book  3. 
Macdonald.     The  Socialist  Movement.     Ch.  9. 

*  Richardson.     Industrial  Problems.     Part  2,  chs.  1-4. 
Spargo.     The  Substance  of  Socialism.     Parts  2-3. 

Socialism.    Ch.  9. 
Vail.     Principles  of  Scientific  Socialism.     Chs.  4-5. 
Vandervelde.     Collectivism  and  Industrial  Evolution. 

Part  2,  ch.  4. 
Wells.    New  Worids  for  Old.    Ch.  13. 

(6)    Non-socialist  Authors  and  Critics. 

*  Anonymous.     The  Case  Against  Socialism.     Chs.  5-17. 
Barker.    British  Socialism.     Chs.  2,  36. 
Bramwell.     Economics  and  Socialism. 

Cathrein.     Socialism. 
DoNisTHORPE.     Individualism. 
•Ely.     Socialism  and  Social  Reform.     Part  1,  ch.  4; 
part  3. 
Flint.     Socialism. 

FoRSTER.     English  Socialism  of  To-day. 
Graham.     Socialism,  New  and  Old.     Chs.  5-8. 
GuYOT.     The  Tyranny  of  Socialism. 

Socialistic  Fallacies.     Book  7. 
KAtrpMANN.     Socialism.     Book  3. 
Leroy-Beaulieu.     Collectivism. 
Mallock.     Social  Equality. 

Classes  and  Masses. 

A  Critical  Examination  of  Socialism. 

Socialism . 

Aristocracy  and  Evolution. 


Il8  ESSENTIALS   OF  SOCIALISM 

Naquet.     Collectivism  and  Socialism. 
Nicholson.    Historical  Progress  and  Ideal  Socialism. 
*ScHAFFLE.    The  Impossibility  of  Social  Democracy. 

*  The  Quintessence  of  Socialism. 

*  Skelton.     Socialism.     Ch.  8. 
Spencoer.     The  Man  versus  the  State. 

*  Stoddart.     The  New  Socialism.     Chs.  7,  9,  13. 
Strachey.     Problems  and  Perils  of  Socialism. 
StJMNER.    What  Social  Classes  Owe  to  Each  Other. 

2.  Socialism  and  Equality. 

Ferri.     Socialism  and  Modem  Science.    Pp.  13-34. 
Ely.     Socialism  and  Social  Reform.     Part  1,  ch.  5. 
Richardson.     Industrial  Problems.     Pp.  216-218. 
Shaw.     Socialism  and  Superior  Brains. 

*  Spargo.    Socialists;  Who  They  Are,  etc.   Pp.  107-119. 
*Vail.    Modem  Socialism.     Ch.  14,  sec.  1. 

*  Principles  of  Scientific  Sociahsm.     Ch.  13,  sec.  10. 
Wells.    New  Worlds  for  Old.     Ch.  9,  sec.  5. 

3.  Socialism  and  Individual  Freedom. 
(a)   Socialist  Authors. 

Blatchford.  Merrie  England.  Chs.  18,  21. 
Ghent.  Socialism  and  Success.  Pp.  249  ff. 
HiLQuiT.     Socialism  in  Theory  and  P*ractice.     Part  1, 

ch.  2. 
Hyndman.     Socialism  and  Slavery. 

*  Kautsky.     The  Class  Struggle.     Pp.  148-159. 
Kelly.     Twentieth  Century  Sociahsm.     Pp.  46-51. 

•Richardson.     Industrial  Problems.     Pp.  224  fif. 

*  Spargo.     The  Substance  of  Socialism.     Part  2. 
Vail.     Modem  Socialism.     Ch.  14,  sees.  7,  9. 
Vandervelde.    Collectivism  and  Industrial  Evolution. 

Part  2,  ch.  6,  sec.  2. 
Wells.    New  Worlds  for  Old.    Ch.  9,  sec.  4. 


OUTLINES  OF  A  POSSIBLE  SOCIALIST  STATE      1 19 

(6)    Non^sodalists  and  Critics. 

Anonymous.     The  Case  Against  Socialism.     Ch.  7. 
Ely.     Evolution  of  Industrial  Society.     Part  2,  eh.  11. 
Naquet.    Collectivism  and  Socialism.     Book  3,  ch.  5. 

*  Skelton.     Socialism.    Pp.  215  ff . 

*  Spencek.     The  Man  versus  the  State. 
Stoddart.    The  New  Socialism.     Ch.  8. 

ViLLiERS.    The  Socialist  Movement  in  England.    Part 
3,  ch.  5. 

4.  Socialism  and  Incentive. 

(a)   Socialist  Authors. 

Benson.     Socialism  Made  Plain.     Ch.  7. 

*  Blatchford.    Merrie  England.     Chs.  14,  17. 
Vandervelde.     Collectivism  and  Industrial  Evolution. 

Part  2,  ch.  6,  sec.  1. 

(&)    Criticism. 

Anonymous.    The  Case  Against  Socialism.    Pp.  311- 
317. 

5.  Socialism  and  Agrictilture. 

(a)   Socialist  Authors. 

Benson.     Socialism  Made  Plain.     Ch.  8. 

Carpenter  and  Others.     Socialism  and  Agriculture. 

Ensor.    Modem  Socialism.     Chs.  15-16. 

Mills.     The  Struggle  for  Existence.     Ch.  32. 

Richardson.     Industrial  Problems.     Part  2,  ch.  3. 

*  Simons.     The  American  Farmer. 

(6)    Criticism. 

Anonymous.    The  Case  Against  Socialism.    Chs.  14-15. 

Barker.     British  Socialism.     Chs.  8,  18. 

*  Ely.    Socialism  and  Social  Reform.    Pp.  219-221. 

*  Flint.    Socialism.    Ch.  6. 


120  ESSENTIALS  OF  SOCIAUSU 

6.  Socialism  and  Population, 
(o)  Socialist  Authors. 

Bebel.    Womaji  Under  Socialism.    Pp.  355-371. 
Mills.     The  Struggle  for  Existence.    Ch.  27. 

(6)    Criticism. 

Anonymous.    The  Case  Against  Socialism.    Pp.  405- 
410. 
*  Skelton.     Socialism.    Pp.  218  ff. 


CHAPTER  VIII 

SUPPLEMENT ABY   CHAPTER.      SOCIALISM  AND 
TRADE-UNIONISM 

The  scientific  socialists'  in  late  years  have,  to  a 
very  great  extent,  changed  their  position  upon  the 
question  of  trade-unionism.  Although  not  openly 
opposing  its  tenets,  the  early  leaders  of  scientific 
socialism  were  not  strongly  inclined  to  accept 
them.  The  International  Workingmen's  Associa- 
tion, organized  by  Marx  in  1864,  and  led  by  him 
until  its  dissolution  in  1876,  was  not  a  trade-union 
in  any  sense  of  the  word.  It  was  an  international 
association  of  workingmen  formed  for  the  purpose 
of  spreading  socialistic  ideas,  and  of  bettering  the 
conditions  of  the  workers  by  means  other  than 
those  followed  to-day  by  trade-unionists. 

Socialists  in  the  past  have  opposed  trade-union- 
ism on  the  grounds  that  — 

(1)  It  can  only  lessen  the  exploitation  of  the 
laboring  class  ;  it  cannot  abolish  it. 

(2)  Collective  bargaining  is  both  inconclusive 
and  enormously  costly.  In  the  end  unions  cannot 
help  but  fail  to  be  productive  of  results,  and  as  a 


122  ESSENTIALS   OF  SOCIALISM 

consequence  will  then  be  forced  into  politics,  and 
will  fight  out  their  battles  against  the  employers 
upon  the  political  field  and  under  the  banner  of 
socialism. 

(3)  The  field  of  union  activities  is  very  limited, 
being  confined  for  the  most  part  to  union  mem- 
bers, the  majority  of  whom  are  males. 

(4)  The  unions  touch  only  a  few  of  the  vital 
interests  of  their  members,  such  as  questions  of 
hours,  wages,  and  working  conditions  in  general, 
and  do  not  concern  themselves  with  the  larger 
and  more  important  problems,  in  connection  with 
which  the  workers  have  well-defined  class  interests. 
The  struggle  upon  the  industrial  field  is  but  one- 
half  of  the  battle,  because  political  issues,  in  the 
majority  of  cases,  are  also  of  great  economic  im- 
portance. 

(5)  Unions  are  frequently  led  by  unscrupulous, 
self-seeking  men,  whom  the  socialists  designate  as 
"labor  fakirs." 

With  the  growing  strength  of  Organized  Labor, 
the  socialists  have  realized  that  the  unions  can  be 
used  for  the  purpose  of  advancing  the  propaganda 
of  socialism,  and  as  a  consequence  they  have  be- 
come very  active  in  trade-union  circles.  Their 
present  point  of  view  is  briefly  set  forth  in  the 
following  five  propositions :  — 


SOCIALISM  AND   TRADE-UNIONISM  1 23 

(1)  The  trade-unions  are  an  outgrowth  of  the 
conditions  of  capitalistic  industry. 

(2)  They  are  a  necessity  in  the  struggle  of  the 
•workers  against  their  employers. 

(3)  All  members  of  the  socialist  party  are  there- 
fore advised  to  join  the  union  of  their  craft,  so  as 
to  further  the  struggle  of  their  class  against  their 
employers  upon  the  industrial  field. 

(4)  Political  differences  of  opinion  do  not  jus- 
tify a  division  of  the  workers  upon  the  industrial 
or  the  political  fields.  They  should  always  pre- 
sent a  united  front  to  their  employers. 

(5)  It  is  to  the  interest  of  the  working  class 
that  its  members  be  educated  in  socialist  doctrines, 
and  that  they  be  taught  "  to  vote  as  they  strike," 
i.e.  in  accordance  with  their  class  interests. 
Thus  the  socialists  at  present  are  pursuing  a 
policy  of  "  boring  from  within,"  i.e.  of  joining  the 
unions  and  working  from  within  with  the  idea  of 
converting  the  members  to  socialism,  rather  than 
of  following  the  policy  of  remaining  outside  the 
unions  and  attempting  to  force  them  into  class- 
conscious  political  action. 

In  brief,  the  present-day  scientific  socialists  do 
not  oppose  trade-unionism.  They  hold  that  the 
union  should  be  the  weapon  of  the  working  class 
upon  the  industrial  field,  and  that  the  socialist 


124  ESSENTIALS  OF  SOCIALISM 

party  should  be  its  weapon  upon  the  political  field. 
It  is  only  by  this  means  that  it  would  be  possible 
in  every  instance  for  the  proletariat  to  act  as  a 
unit  in  its  struggle  with  the  capitalist  class. 


REFERENCES 

t.  Socialism  and  Trade-unionism. 

(a)   Statement  by  Socialists. 
Bebel.     Labor  Unions  and  Political  Parties. 
Bernstein.     Evolutionary  Socialism,     Pp.  135  S. 
Debs.     Unionism  and  Socialism. 
•HiLQUiT.      History  of  Socialism  in  the  United  States. 
Part  2,  ch.  3,  sec.  4. 

•  Kampffmeter.     Changes  in  the  Theory,  etc.     Ch.  5. 

•  Kautsky.  The  Class  Struggle.  Pp.  188-202. 
Mills.  The  Stru^le  for  Existence.  Ch.  35. 
Skelton.     SociaUsm.     Pp.  240-242,  291  fif.,  304  S. 

(6)    Criticism. 

Barker.     British  SociaUsm.     Ch.  7. 
♦Goldstein.      Socialism;     the    Nation    of    Fatherless 
ChUdren.     Pp.  323-369. 

e.  The  International  Working-men's  Association. 

Dawson.     German  Socialism  and  Ferdinand  Lassalle. 

Ch.  13. 
Elt.     The  Labor  Movement  in  America.     Ch.  9. 

*  French  and  German  Socialism.     Ch,  11. 

HiLQuiT.    History  of  Socialism  in  the  United  States. 

Part  2,  ch.  3,  sees.  1-3. 
Kaufmann.    Utopias,  etc.    Ch.  14. 

*  KiBKUP.    History  of  Socialism.    Ch.  8. 


SOCIALISM  AND    TRADE-UNIONISM  125 

Laveuete.     Socialism  of  To-day.     Ch.  9. 

Skelton.     Socialism.     Pp.  226-229. 

SoMBART.    Socialism  and  the  Social  Movement.    Pp. 

175-192. 
WooiiSET.    Communism  and  Socialism.    Ch.  4. 


CHAPTER  IX 

CONCLUSION 

In  their  criticism  of  capitalistic  society  tlie  posi- 
tion of  the  scientific  socialists  is,  for  the  most  part, 
well  taken.  As  a  result  of  this  criticism  many  of 
the  more  flagrant  abuses  of  capitalism  have  been 
abolished.  In  this  regard  the  socialist  agitation 
has  performed  an  invaluable  service  to  mankind 
and  has  amply  justified  the  enthusiasm  and  efforts 
of  its  followers.  On  the  other  hand,  however,  seri- 
ous objections  can  be  raised  not  only  against  the 
Marxian  theories,  upon  which  the  movement  is 
supposed  to  be  based,  but  also  against  the  pro- 
posals of  the  socialists  regarding  what  is  to  be  the 
order  of  things  under  their  prophesied  social  and 
industrial  system.  The  socialists  can  also  be  very 
adversely  criticised  for  underestimating  the  great 
complexity  of  the  present  industrial  organization. 
Too  many  of  them  do  not  realize  the  difficulties 
which  would  have  to  be  met  in  bringing  about  its 
socialization. 

As  a  result  of  the  constant  modification  of  party 
principles  and  as  a  consequence  of  the  adaptation 

126 


CONCLUSION  127 

of  their  programme  to  current  needs  with  the  idea 
of  grappling  with  present-day  problems,  although 
some  critics  say  solely  for  the  purpose  of  vote-get- 
ting, constructive  policies  of  various  sorts  are 
being  constantly  advanced  by  the  socialists.  So 
noticeable  has  been  this  change  in  their  attitude 
that  many  now  contend  that  the  socialist  party  in 
a  majority  of  countries  has  become  merely  a  radi- 
cal labor  party  and  has  truly  lost  sight  of  its 
former  goal,  i.e.  socialism.  This  situation  is  also 
responsible  for  the  late  and  rapidly  growing  opin- 
ion tl^at  socialism  and  the  socialist  movement  are 
two  distinct  things,  the  former  being  a  belief  in 
the  Marxian  theories  and  in  the  prophesied  stage 
of  collective  ownership,  while  the  latter  is  nothing 
more  than  a  radical  political  party  and  is  concerned 
with  the  Marxian  principles  only  through  a  fre- 
quent though  unintelligent  use  of  the  terms  which 
Marx  employed  in  advancing  his  ideas.  There  is, 
indeed,  much  truth  in  the  statement  that  the  so- 
cialist movement  does  not  stand  or  fall  with  the 
substantiation  or  the  refutation  of  the  Marxian 
doctrines. 

Finally,  it  can  be  truly  said  that  the  socialists 
fail  to  recognize  the  strength  and  the  advantages 
of  capitalism.  They  see  only  its  weaknesses  and 
abuses.     Capitalism  as  yet  is  very  young,  being 


128  ESSENTIALS  OF  SOCIALISM 

scarcely  more  than  a  century  old,  and  one  ought 
not  to  expect  it  to  be  a  perfect  or  an  ideal  state. 
Possibly  many  or  all  of  the  evils  which  exist  to-day 
may  be  removed  in  the  future,  leaving  only  the 
advantages  to  persist.  Capitalism  is  not  totter- 
ing on  its  last  legs,  as  many  socialists  claim  ;  it  is 
still  very  strong  and  active,  and  its  end  is  not  yet 
in  sight.  Marx,  Engels,  and  other  socialists  of 
early  vintage  predicted  its  overthrow  as  destined 
to  occur  some  deoades  ago,  but  its  dissolution  ap- 
pears to  be  as  far  as  ever,  or  possibly  farther  than 
ever,  removed  from  the  present.  It  is  because  of 
these  things  that  the  socialists  can  be  justly 
criticised  for  underestimating  the  possibilities  and 
the  value  of  social  reform  measures  and  for  scoffing 
at  those  who  propose  them  as  an  end  in  them- 
selves. 


BIBLIOGRAPHY 

The  following  bibliography  does  not  aim  to  be 
complete  in  any  sense  of  the  word.  It  contains 
only  the  titles  of  those  volumes  which  may  prove 
to  be  of  direct  aid  to  the  student  of  socialism. 
Only  English  titles  are  given  where  translations 
have  been  made. 

Bibliographies 

Ely.     Socialism  and  Social  Reform.    Pp.  339-442. 

Guthrie.     Socialism  Before  the  French  Revolution.    Ch.  I. 

Harvard  University  Faculty.  Guide  to  Reading  in 
Social  Ethics  and  Allied  Subjects,     Cambridge,  1910. 

Hunter.     Socialists  at  Work.    Pp.  364-367. 

NoRDHOFF.  The  Communistic  Societies  of  the  United 
States.    Pp.  421-432. 

Skelton.     Socialism.    Pp.  313-322. 

Stammhammer,  J.  Bibliographic  des  Socialismus  und 
Communismus.     3  vols.     Jena,  1893-1909. 

Stoddart.     The  New  Socialism.    Pp.  4-20. 

Bliss,  W.  D.  P.  Encyclopedia  of  Social  Reform  (New 
York,  1908),  and  Stegman,  C,  and  Hugo,  C.  Hand- 
buch  des  Socialismus  (Zurich,  1897)  will  be  found  to 
be  of  constant  assistance  to  the  interested  reader. 

Magazines  and  Newspapers 

Among  the  more  important  are:  — 
United  States 
The  International  Socialist  Review,    Chicago,    monthly. 
This  magazine  contains  a  very  ably  edited  depart- 

K  129 


130  ESSENTIALS  OF  SOCIAUSM 

ment  of  "  World  News,"  in  which  excellent  data  can 
be  found  dealing  with  late  developments  in  the 
socialist  movement  of  other  countries. 

The  Appeal  to  Reason,  Girard,  Kan.,  weekly. 

The  Coming  Nation,    Girard,  Kan.,  weekly. 

The  Social  Democratic  Herald,  Milwaukee,  weekly. 

Die  Vorwarts,  Milwaukee,  weekly. 

The  Chicago  Daily  Socialist,  Chicago. 

The  New  York  Call,  New  York,  daily. 

England 

All  of  the  following  are  published  in  London : — 
The  Socialist  Review,  monthly. 
The  Labor  Leader,  monthly. 
Justice,  weekly. 
The  Clarion,  weekly. 
The  Commonwealth,  weekly. 
The  Fabian  News,  weekly. 
Liberty,  monthly. 

Germany 

Die  Neue  Zeit,  Stuttgart,  weekly. 
Socialistische  Monatshefte,  Berlin,  biweekly. 
Die  Vorwarts,  Berlin,  daily. 

France 

All  of  the  following  are  published  in  Paris :  — 
La  revue  socialiste,  monthly. 
Le  mouvement  socialiste,  monthly. 
Le  socialisme,  weekly. 
La  guerre  sociale,  weekly. 
L'HumanitS,  daily. 


BIBLIOGRAPHY  131 

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Some  of  their  Historical  Relations.     London,  1893. 
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England.     London,  1869. 
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Broome,  I.     The  Last  Days  of  the  Ruskin  Cooperative 

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A  Perplexed  Philosopher. 
Social  Problems. 
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Property  in  Land. 
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The  Inquirer;  Reflections  upon  Education,  Manners, 

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Thoughts  on  Man,  his  Nature,  Productions,  and  Dis- 
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GoHRE,  P.     Evangelical-Social  Movement  in  Germany; 
Its  History  and  Aims.     London,  1898. 
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Graham,  W.      Socialism,   New   and   Old.      New  York, 

1891. 
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Headlam,    S.    D.     Christian    Socialism.     Fabian  Tract, 

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Herron,  G.  D.     The  Christian  State.     New  York,  1895. 

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The  Trust  Movement  in  British  Industry.     New  York, 
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Malato,  C.     De  la  Commune  &  I'anarchie.     Paris,  1897. 
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Mallock,  W.  H.     Socialism.     New  York,  1907. 
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Myers,   G.     History  of  the  Great  American  Fortunes. 

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Mills,   W.   T.     The  Struggle  for  Existence.    Chicago, 

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See  Menger,  A.  Right'  to  the  Whole  Produce  of 
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Parsons,  F.;  Tyson,  R.;  Pomerot,  E.;  Cross,  I.  B. 
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Patten,  S.  N.  The  Development  of  English  Thought. 
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Paul,  C.  K.  Wm.  Godwin ;  His  Friends  and  Contem- 
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Peabodt,  F.  Jesus  Christ  and  the  Social  Question. 
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Peixotto,  J.  B.  The  French  Revolution  and  Modem 
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Perkins,  W.  R.,  and  Wick,  B.  L.  History  of  the  Amana 
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Plechanoff,  G.  Anarchism  and  Socialism.  Chicago, 
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Podmore,  F.  Robert  Owen,  a  Biography.  2  vols.  New 
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Post,  L.  F.  The  Single  Tax.  (Pamphlet.)  Cedar 
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Potter,  B.  The  Cooperative  Movement  in  Great  Britain. 
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Pouget,  E.  La  Conf6d6ration  g6n6rale  du  travail.  Paris, 
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1910. 
Methods  of  Acquiring  Possession  of  our  National  In- 
dustries.    (Pamphlet.)     Girard,  Kan.,  1903. 
Ritchie,  D.  G.    Natural  Rights.     London,  1895. 
Robertson,   J.    M.     Buckle   and   his   Critics.     London, 

1895. 
Rodbertus-Jagetzow,   K.   (1805-1875).     His   more  im- 
portant works  are:  — 
Zur  Erkenntniss  unserer  staatswissenschaftlichen  Zus- 

tande.    Neubrandenburg,  1842. 
Zur  Beleuchtung  der  soeialen  Frage.     2  vols.     Berlin, 

1875-1885. 
Das  Kapital.     Berlin,  1884. 
RusKiN,  J.   (1819-1900).     The  following  volumes  have 
reference  to  economic  questions:  — 
Fors  Clavigera.     London,  1871. 
Time  and  Tide.     London,  1868. 
Crown  of  Wild  Olive.     London,  1866. 
Unto  This  Last.     London,  1862. 
Munera  Pulveris.     London,  1862-1863. 


146  ESSENTIALS  OF  SOCIALISM 

Russell,  B.     German  Social  Democracy.     London,  1896. 
St.  Ledger,  A.     Australian  Socialism.     New  York,  1909. 
Saini^Simon,   Comte   de    (1760-1825).      (Euvres  de  H. 
Saint  Simon  et  d'Enfantin.     47  vols.     Paris,  1865- 
1878. 
M6moire  sur  la  science  de  I'homme.     1859. 
Travail  sur  la  gravitation  universelle.     1859. 
Du  systfeme  industriel.     1821. 
Le  cat^chisme  des  industrials.     1823-1824. 
Nouveau  Christianisme.     1825. 
Sabgant,  W.  L.     Robert  Owen  and  his  Social  Philosophy. 

London,  1860. 
SchAffle,  a.    The  Quintessence  of  Socialism.    London, 
1888. 
The  Impossibility  of  Social  Democracy.     London,  1892. 
Seager,    H.    R.     Introduction    to    Economies.     3d    ed. 

New  York,  1906. 
Seebohm,  F.     The  Oxford  Reformers.     London,  1887. 
Seligman,   E.   R.  a.     The  Economic   Interpretation  of 
History.     New  York,  1903. 
F*rinciples  of  Economics.     New  York,  1905. 
Shaw,  A.     Icaria,   a  Chapter  in  the  History  of  Com- 
munism.    New  York,  1884. 
Shaw,  G.  B.     The  Impossibilities  of  Anarchism.     Fabian 
Tract,  no.  45. 
The  Fabian  Society;  Its  Early  History.    Fabian  Tract, 

no.  41. 
Socialism  and  Superior  Brains.     New  York,  1910. 
Fabianism  and  the  Empire.     London,  1900. 
Sherman,  T.  G.     Natural  Taxation.     New  York,  1898. 
SiMKHOviTCH,  W.  G.    Marxism  versus  Socialism.  Political 
Science  Quarterly,  xxiii,  193,  652;    xxiv,  236,  641; 
XXV,  393. 
Simons,     A.     M.     Socialism     vexsui     Anarchy.    Pocket 
Library  of  Socialism,  no.  31. 
The  American  Farmer.    Chicago,  1902. 


BIBLIOGRAPHY  1 47 

Single  Tax  versus  Socialism.     Pocket  Library  of  Social- 
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Class  Struggles  in  America,     Chicago,  1907. 
Skelton,  O.  D.     Socialism;    a  Critical  Analysis.     New 

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Glasgow,  1900. 
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Oxford,  1887. 
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New  York,  1909. 
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INDEX 


Acquiring    industries,    socialist 

proposals,  101-105. 
Agriculture  under  socialism,  26, 

112-113,  119. 
Anarchism,  19-22,  29-30. 
Australia,   socialism  in,  8-9. 

Bernstein,  Ed.,  71. 
Bohm-Bawerk,  58-59. 

Catastrophe  theory,  67-70,  87- 

88. 
Christian  Socialism,  36,  74-75. 
Class    struggle,    44-48,    81-83, 

91-93. 
Communism,  3,  23. 
Communist  Manifesto,  2,  40. 
Competition,  17. 
Concentration  of  industry,  63- 

65,  85-87,  93-96. 
Confiscation,  103-104. 
Contradictions    of    capitalism, 

96-98,  100. 
Cooperation,  17,  28-29. 
Cooperative       Commonwealth, 

106-120. 
Crises,  69-61,  84-85,  94-95. 

Definition  of  socialism,   14-16, 

27. 
Democratic  features  of  socialism, 

15,  27,  107,  109,  112. 
Direct  primary,  15. 


Early    English    Socialists,    53- 

54  n,  59,  88-89. 
Economic  interpretation  of  his< 

tory,  43-48,  81-83. 
Engels,  2,  40. 
England,  9. 
Evolution  of  society,  42,  81,  90- 

91. 

Fabian  socialism,  37,  76. 
Family  under  socialism,  20-22^ 

32-33,  111. 
France,  9. 
Full  product   of   labor,   61-63, 

85. 

General  strike,  73,  89. 
Germany,  9-10. 

Government  ownership,  16,   28. 
Great     contradiction     in     the 
Marxian  theory,  56-59. 

Incentive  under  socialism,  114- 

115,  119. 
Increasing  misery,  theory  of,  66- 

67,  87,  93-96. 
Indictment  of  capitalism,  11-13. 
Inevitability   of   socialism,   90- 

100. 
Initiative,  15,  107. 
Interest,  61-62,  88. 
International   character  of  the 

socialist  movement,  3-4. 


151 


152 


INDEX 


International  Workingmen's  As- 
sociation, 121,  ViA-llh. 

Labor  theory  of  value,  48-53, 

83-84. 
Liberty   under   socialism,    110, 

118-119. 

Management  of  industry  under 
socialism,  15-16,  107,  109- 
110. 

Marx,  Karl,  1-3,  40. 

Marxian  system,  40-70. 

Marxists,  70. 

Nihilism,  22-23,  30. 
Objections  to  socialism,  1 1 1-1 16. 

Population,  diflBculties  under 
socialism,  115-116,  120. 

Private  property  under  socialism, 
15,  108. 

Profits,  see  surplus  value. 

Profit-sharing,  18,  29. 

Recall,  15,  107. 

Referendum,  15,  107. 

Religion  and  socialism,  20-21, 

33-34,  111. 
Rent,  62,  88. 
Revisionism,  71-72,  89. 


Scientific  socialism,  1-3,  40-70, 

78-88. 

Single  tax,  25,  31-32. 

Socialism,  a  working  class  move- 
ment, 41. 

Socialist  Party  Organization,  15, 
34. 

Socialists  of  the  Chair,  38,  76. 

Socialist  State,  106-120. 

Social  Reform,  24,  31. 

State  Socialists,  38,  76. 

Surplus  value,  theory  of,  53-69, 
84,  88. 

Syndicalism,  72-74,  89. 

Taxation,  confiscatory,  103. 
Trade-unionism,  121-126. 

Unemployed    problem,    93-96, 

100. 
United  States,  socialism  in,  5-8, 

10,  72. 
Utopian  socialism,  2,  6,  39,  76- 

78. 

Value,  labor  theory  of,  48-63, 

83-84. 
Voting    strength    of    socialism 

throughout  the  world,  4. 

Wages  under  socialism,  113-114. 


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1964 

r.Dp  t     < 

984 

MAY  .3  0 

1967 

MAY  24 

1967  0 

MAY  2 

5  1968 

mi  'd ; 

MSob  }i 

JUNl 

I  1970 

JIJN 

1  197(1  8 

9  1^76 

MAt  ^ 

^  tOlw 

ii/j/si    jL  ^ 

-7 
1   1  /    \   >< 

f 

HXP'^ 


X  SOUTHERN  f 


C7 


A'''''St'l5S"iff 


HX86 


C7 


AUTHOR 

Cross,  I»B. 


TiTLE 


The  essentials  of  socialism. 


DATE  DUE 


BORROWERS   NAME 


Cross,    I.B, 

The  essentials  of  socialism. 


